Global fuel systems supplier TI Automotive Ltd., a nearly 100-year-old parts maker, has agreed to be acquired by private equity firm Bain Capital LLC.
The terms of the deal were not disclosed, but the Bloomberg news agency estimated the value of the deal at US$2.4 billion.
TI Automotive, based in Auburn Hills, Mich., makes equipment for handling brake fluid and fuel, including tubing, pumps and tanks. It has facilities in 29 countries. Founded in 1919, the company was most recently bought by Oaktree and Duquesne Capital in a 2007 debt restructuring.
According to Boston-based Bain Capital, TI Automotive’s current management team would continue to lead it.
The deal is subject to approval by TI Automotive shareholders. Closing is expected in mid-2015, the company said.
“We are excited that Bain Capital will invest in TI Automotive to grow the business and to enable our team to focus solely on what we do best — manufacturing high quality, safety critical fluid systems for our customers,” TI Automotive CEO Bill Kozyra Kozyra said in a statement. “Bain Capital brings to TI Automotive a deep understanding of our business and a well-known track record of global success in the automotive industry, and we look forward to partnering with them.”
Bain Capital has invested in a number of auto parts suppliers over the years, including Sensata Technologies of the Netherlands and FTE Automotive of Germany.
TI Automotive’s Canadian headquarters is located in Brampton, Ont.
