Delphi Negotiates to Buy U.K. Electrical Connectors Maker

Delphi Automotive plc says it is in "exclusive talks" to buy the electrical connectors unit of Gillingham, England-based FCI Group for about €764 million ($958 million).

The companies expect to close the deal by year-end. The sale requires regulatory approvals and the consent of FCI's labor unions.

Delphi says acquiring the business from private equity fund Bain Capital would increase its presence in Asia and make it a "strong No. 2" in the market for automotive connectors. The FCI unit, known as the Motorized Vehicles division, makes high-performance interconnection systems used in safety restraint systems, powertrains and electric vehicles.

The unit generated €692 million ($868 million) in revenue last year. Delphi plans to fold the business into its $2.9 billion electrical and electronic architecture operations. The U.S. company expects to save $50 million next year from purchasing and product development synergies and $80 million per year by 2015.

Delphi said last month it was willing to spend as much as $1 billion on an acquisition in the powertrain, electronics or electrical connectors business. The company says it is open to further acquisitions.