11 June 2007
Umicore has reached an agreement to acquire the automotive catalysts business of Delphi for US$55.6 million. Given the Chapter 11 bankruptcy protection under which Delphi is now operating, the transaction will be subject to competitive bidding as part of an auction process. It is anticipated that the auction process will take place towards the end of July 2007 and, should Umicore’s bid prevail, that the deal would close promptly thereafter.
As part of the transaction, Umicore would acquire manufacturing and research facilities in Tulsa (Oklahoma, US), Florange (France) and Port Elizabeth (South Africa). Umicore would also acquire a complete customer book and intellectual property portfolio, as well as business activities and certain assets in China, Australia and Mexico. Existing test programs at Delphi facilities in Bascharage (Luxemburg) and Flint (Michigan, US) will continue under service agreements.
In 2006, the Delphi catalyst business recorded a pro-forma operating loss of US$2 million on revenues (excluding precious metal content) of US$162 million.
Umicore is a global metals and materials group based in Brussels (Belgium). Umicore entered the automotive catalyst business when it purchased the former Degussa precious metals group from OMG in 2003.