Automotive fluid storage and delivery specialist TI Fluid Systems (TIFS) became another statistic last week in the seemingly unstoppable wave of UK M&A (mergers and acquisitions).

Having spurned two lower bids from Apollo-backed ABC Technologies, the auto parts-maker finally agreed a 200p per cash offer which valued the company at just over £1 billion.

The offer represents a 21% premium to ABC’s initial pitch and a 55% premium to the company’s share price prior to the offer period.

The board of TI Fluid Systems said the deal gave shareholders ‘an immediate and certain’ cash value for their investment ‘at a level which may not be achievable until the execution of TI Fluid Systems’ strategy is delivered over the medium to longer term, with that execution subject to a number of factors outside of TI Fluid Systems’ control’.

The Oxford-based business has faced a ‘challenging’ market this year, with revenue down around 6% in the third quarter due to customer delays, and has been implementing self-help measures in order to prop up the bottom line.

The shares have struggled in the last couple of years, trading on a single-digit PE (price to earnings) ratio, so although the take-out price of 200p is well below the 2021 highs investors aren’t about to turn it down. 

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