Acquisition of Cascade Engineering Europe

TI Fluid Systems PLC

05 September 2023

 

5 September 2023

TI FLUID SYSTEMS TO ACQUIRE CASCADE ENGINEERING EUROPE

·    TI Fluid Systems (TIFS) to acquire Cascade Engineering Europe (CEE), a leader in the design and manufacturing of thermal fluid connectors and other complex plastic injection moulded components for the automotive industry.

·    The acquisition will increase TIFS' thermal connector market share while enhancing its technology in this rapidly growing segment of electrified vehicles.

·    TIFS will welcome CEE's 349 dedicated employees and acquire the 6,500m² manufacturing facility in Budapest, Hungary.

TI Fluid Systems (LON:TIFS), a leading global supplier of automotive fluid systems technology, has agreed to acquire Cascade Engineering Europe, a Hungarian-based leader in the design and manufacturing of thermal fluid connectors and other complex plastic injection moulded components for the automotive industry. The business has a strong reputation for its technical expertise and product quality, with in-house capabilities from design and development to tooling, prototyping and serial manufacturing.

TIFS will acquire CEE for a cash consideration of $27.7 million (c. €25.4 million) or about 6x estimated 2023 EBITDA excluding synergies. CEE is expected to generate revenue of c.€35 million in the year ending 31 December 2023 and the acquisition will be immediately accretive to the group's underlying earnings. The acquisition is subject to customary closing conditions and regulatory approval. 

Hans Dieltjens, President and CEO of TI Fluid Systems, said, "Adding CEE's operations and expertise to our portfolio is an important strategic step for TIFS.  This acquisition grows our market share in thermal fluid connectors for electric vehicles and aligns with our overarching electrification strategy.  I would particularly like to extend a warm welcome to the dedicated staff at CEE who will join the Company as it follows its growth strategy."

To find out more about TI Fluid Systems, visit www.tifluidsystems.com.

About TI Fluid Systems

TI Fluid Systems is a global innovator of thermal and fluid system solutions for the full range of current and developing vehicle architectures. Serving all major automotive manufacturers, with more than 100 years of automotive supply experience; TI Fluid Systems operates across 28 countries with a commitment to improving efficiency, performance and sustainability worldwide.

Disclaimer

This announcement contains certain forward-looking statements with respect to the financial condition, results of operations and business of TI Fluid Systems plc (the "Company"). The words "expected", "estimated", "will", "should" and similar expressions identify forward-looking statements. Others can be identified from the context in which they are made. By their nature, forward-looking statements involve risks and uncertainties, and such forward-looking statements are made only as of the date of this announcement. Accordingly, no assurance can be given that the forward-looking statements will prove to be accurate and you are cautioned not to place undue reliance on forward-looking statements due to the inherent uncertainty therein. The past performance of the Company cannot be relied on as a guide to future performance. Nothing in this announcement should be construed as a profit forecast.

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