Delphi agrees to sell AC units to Mahle
Delphi Automotive Plc’s years-long restructuring is taking another step forward, with the former Troy-based supplier agreeing to sell its automotive heating and cooling business to Mahle GmbH of Germany, a source familiar with the situation confirmed.
Mahle is expected to pay $700 million in a transaction that will cap the tenure of CEO Rodney O’Neal, who will retire effective March 1. In a related transaction, Mahle also will acquire Shanghai Delphi Automotive Air-Conditioning System Co. for an undisclosed sum.
The moves augment Mahle’s position in the global heating and cooling segment, and allow Delphi to continue narrowing its focus on what it calls “safe, green and connected” — high-tech areas that O’Neal said in an interview are “just going to get hotter.”
Delphi closed last year with $17 billion in sales, up from $15.5 billion in 2013. The thermal division accounts for $1.6 billion in sales from 13 locations employing 6,700.
“Much of Delphi’s success lies not just in what we did, but in what we did not do,” O’Neal said. “You have to be relevant to be successful.”