SCHAFFHAUSEN, Switzerland -- TE Connectivity Ltd. announces 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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