TE Connectivity (TEL) in Exclusive Talks to Acquire Deutsch Group SAS in $2.06B Deal

TE Connectivity Ltd. (NYSE: TEL) today announced that it has entered into exclusive negotiations with Wende and has made a binding offer to acquire Deutsch Group SAS (Deutsch), a global leader in high-performance connectors for harsh environments, in a transaction valued at €1.55 billion (approximately $2.06 billion at current exchange rates). The proposed acquisition will enable TE to provide a wide range of industry-leading connectivity products for harsh environment applications. It is expected to be accretive to the Company's adjusted earnings by approximately $0.20 per share in fiscal 2013, excluding acquisition-related costs. The potential acquisition is expected to close by the third fiscal quarter ended June 29, 2012.

Completion of the transaction is subject to customary regulatory consents and approvals and acceptance of the binding offer by Wendel, which can only occur after consultation with Deutsch's workers' councils. TE Connectivity expects to finance the pending acquisition through a combination of cash and debt.

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