SCHAFFHAUSEN, Switzerland, Aug. 11, 2014 /PRNewswire/ -- TE Connectivity Ltd. (NYSE: TEL), a world leader in connectivity, today announced the signing of a definitive agreement to acquire the business of Xiamen Delixing Electric Equipment Co., Ltd. ("Delixing") and Xiamen SIBAS Connectors Co., Ltd. ("Sibas").
Delixing/Sibas is a privately owned manufacturer of heavy duty connectors used in machinery equipment, factory automation, power management and railway applications. Delixing/Sibas, which generated revenues in 2013 of $10 million, was established in 1998 and is located in Xiamen City in South Fujian, China. Their heavy duty connectors expand TE's range of solutions for harsh environment applications. When the transaction is completed – which is expected in fiscal year 2015 – the business will report in to TE's Industrial Solutions segment.
"The acquisition of Delixing/Sibas positions TE to capitalize on revenue growth opportunities by increasing our market presence in China and by strengthening our position in harsh environment connectivity solutions," said Thomas Schmidt, senior vice president and general manager, TE Industrial Equipment business unit. "Combining the capabilities and geographical reach of both TE and Delixing/Sibas will enable the company to offer its customers some of the most comprehensive products, technology and services within the industry."
Mr. Qinghai Wu, general manager of Delixing/Sibas, said, "This is an exciting evolution in our company's growth as we explore new opportunities presented by TE's market scale and reach outside China. We are a successful local company with quality products and an established customer base. Now, with TE's comprehensive product portfolio and enhanced technology and services, we anticipate bringing our customers even more success, as well as increased opportunities for personal and professional development for our Delixing/Sibas employees."
TE has had a long-term commitment to China, demonstrated by its strong foundation and continued strategic investments in the region over the last 20 years. TE's revenue in China is $2.2 billion (FY 2013) and the company has 1,900 engineers, over 15 manufacturing sites, four R&D centers and 18 sales offices – now joined by the Delixing/Sibas team (approximately 200 employees) and technology. This investment is part of TE's long-term commitment to maintain its strong presence and local connectivity solutions in China.
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This release contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance, financial condition or achievements to differ materially from anticipated results, performance, financial condition or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. We have no intention and are under no obligation to update or alter (and expressly disclaim any such intention or obligation to do so) our forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. The forward-looking statements in this release include statements addressing our future financial condition and operating results. Examples of factors that could cause actual results to differ materially from those described in the forward-looking statements include, among others, business, economic, competitive and regulatory risks, such as conditions affecting demand for products, particularly in the automotive industry and the telecommunications networks and consumer devices industries; competition and pricing pressure; fluctuations in foreign currency exchange rates and commodity prices; natural disasters and political, economic and military instability in countries in which we operate; developments in the credit markets; future goodwill impairment; compliance with current and future environmental and other laws and regulations; and the possible effects on us of changes in tax laws, tax treaties and other legislation. More detailed information about these and other factors is set forth in TE Connectivity Ltd.'s Annual Report on Form 10-K for the fiscal year ended Sept. 27, 2013 as well as in our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports filed by us with the U.S. Securities and Exchange Commission.
ABOUT TE CONNECTIVITY
TE Connectivity (NYSE: TEL) is a $13 billion world leader in connectivity. The company designs and manufactures products at the heart of electronic connections for the world's leading industries including automotive, energy and industrial, broadband communications, consumer devices, healthcare, and aerospace and defense. TE Connectivity's long-standing commitment to innovation and engineering excellence helps its customers solve the need for more energy efficiency, always-on communications and ever-increasing productivity. With nearly 90,000 employees in over 50 countries, TE Connectivity makes connections the world relies on to work flawlessly every day. To connect with the company, visit: www.TE.com.
SOURCE TE Connectivity Ltd.