AUO Corp (友達) on Monday said it would fully acquire Germany’s Behr-Hella Thermocontrol GmbH (BHTC) for 600 million euros (US$628.6 million) as the Taiwanese flat-panel maker accelerates its expansion into the auto parts market.
The deal would enable AUO to extend its business from vehicle display solutions to BHTC’s intelligent cockpit operation system solutions and other automotive applications, the company said.
“Acquiring BHTC is significant for AUO’s expansion in the automotive market, which is an area with strong growth potential,” AUO chairman Paul Peng (彭?浪) told a news conference in Taipei.
Photo: CNA
Peng said the deal would allow AUO to expand its manufacturing sites globally sooner, as BHTC manages factories in Europe, North America, India and China.
It also represents a vital step for the company to diversify from the flat-panel business, which is famous for its boom-and-bust cycles, he said.
The company has viewed electric mobility as becoming a standout industry in the next 10 years with strong growth potential, AUO president Frank Ko (柯富仁) said.
The deal would help enhance the company’s supply of intelligent cockpit operation system solutions and fuel its growth over the next few years, Ko said.
“AUO should benefit from the acquisition of BHTC in the mid-to-long term,” researcher TrendForce Corp (集邦科技) said yesterday, referring to BHTC’s customer base and global deployment.
TrendForce said the deal would help AUO enter a new business segment, as BHTC is the world leader in climate control units and an expert in human-machine interface solutions.
BHTC counts Audi AG, Bentley Motors Ltd, BMW AG, Tata Motor Ltd, Mercedes-Benz AG and Nissan Motor Co among its customers, the company’s Web site showed. It generated 619 million euros in revenue last year.
AUO plans to acquire the German company in cash, given its strong cash position totaling NT$90.5 billion (US$2.8 billion) as of June 30.
The deal would not negatively affect the company’s financial health, AUO chief financial officer Benjamin Tseng (曾昱智) said, adding that BHTC has been generating cash from its operations over the past three years.
The acquisition is subject to antitrust and regulatory approval in Taiwan, Germany and Mexico, AUO said.
It expects the deal to close by the middle of next year.
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