8-KMaterial Agreements

TE Connectivity plc 8-K Report, Material Agreement (Dec 15, 2011)

Filed December 15, 2011For Securities:TEL

Summary

TE Connectivity plc (TEL) announced a significant acquisition via an 8-K filing on December 15, 2011. The company has entered into a Sale and Purchase Agreement to acquire Deutsch Group SAS, a global leader in high-performance connectors for harsh environments. This strategic move is designed to expand TE Connectivity's presence in specialized connector markets.

Key Highlights

  • 1TE Connectivity Ltd. has agreed to acquire Deutsch Group SAS for a total consideration of €1.15 billion (approximately $1.53 billion), with the total transaction value reaching €1.55 billion (approximately $2.06 billion) including debt repayment.
  • 2The acquisition targets Deutsch Group SAS, a leader in high-performance connectors for harsh environments, aligning with TE Connectivity's strategy for growth in specialized markets.
  • 3The transaction is planned to be financed through a combination of cash and debt.
  • 4Closing of the acquisition is contingent upon customary regulatory approvals, including foreign investment approval from the French Ministry of Economy and Finance, CFIUS approval in the US, and antitrust clearances.
  • 5The transaction is expected to be completed by the third quarter of TE Connectivity's fiscal year 2012 (April-June 2012).
  • 6The purchase price will not be subject to adjustment based on Deutsch's pre-closing performance, but will accrue 5.5% annual interest if the closing is delayed past February 28, 2012.

Frequently Asked Questions

This 8-K filing announces TE Connectivity's entry into a material definitive agreement to acquire Deutsch Group SAS.

The acquisition has a total transaction value of approximately $2.06 billion (€1.55 billion), including the repayment of Deutsch's financial debt. The cash consideration to sellers is €1.15 billion (approximately $1.53 billion).

TE Connectivity expects the transaction to close in the third quarter of its current fiscal year, which is the period between April and June 2012.

The closing is subject to several customary regulatory conditions, including approval from the French Ministry of Economy and Finance, approval from the Committee on Foreign Investment in the United States (CFIUS), and various antitrust clearances.