AUBURN HILLS, Mich.—After months of speculation, Auburn Hills-based TI Automotive Ltd. entered into an agreement today to be acquired by the private equity firm Bain Capital L.L.C.
Terms of the deal were not disclosed, but Bloomberg reports the offer was near $2 billion.
The existing management team, including Chairman and CEO Bill Kozyra, will continue to lead the company and no changes will occur operationally, a TI Automotive spokesman said.
The deal is subject to approval by TI Automotive shareholders. Closing is expected in mid-2015, the company said.
“We are excited that Bain Capital will invest in TI Automotive to grow the business and to enable our team to focus solely on what we do best—manufacturing high-quality, safety-critical fluid systems for our customers,” Kozyra said in a release. “Bain Capital brings to TI Automotive a deep understanding of our business and a well-known track record of global success in the automotive industry, and we look forward to partnering with them.”
Earlier this month, TI Automotive reportedly delayed its board vote for the Bain offer to review a competing offer by Pamplona Capital Management L.L.P., Bloomberg reported.
Pamplona's offer was $115 million more than Bain's, according to that report.
The signing of an agreement with Boston-based Bain comes after months of speculation, which began last summer. In November, reports that Bain was courting TI began to surface, but no deal had been reached.
TI Automotive was previously owned by a consortium of funds led by Oaktree Capital Group L.L.C.
The supplier of automotive fuel systems generated roughly $3 billion in revenue in 2014 and employs 24,000 at 130 locations.