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Auto-parts maker Delphi Automotive Plc (DLPH.N) made a binding offer to buy FCI Group's motorized vehicles division (MVL) for about $972 million to boost its presence in the automotive safety equipment market and expand its footprint in Asia.

MVL is owned by affiliates of private equity firm Bain Capital and makes connectors that link different components of an airbag. FCI Group is based in Guyancourt, France.

"We've looked at this business for a very long time, we know it well," Delphi Chief Executive Officer Rodney O'Neal said on a conference call.

MVL, which had sales of 692 million euros last year, counts Delphi as its largest customer.

The acquisition will add Asian automakers Nissan Motor Corp (7201.T) and Hyundai Motor Co (005380.KS) to Delphi's customer base that currently includes Ford Motor (F.N), General Motors (GM.N), Volkswagen Group and Toyota Motor Corp (7203.T).

O'Neal said in November that Delphi was seeking acquisitions to boost its Asia-Pacific presence, which contributed 15 percent of its total sales of $16.04 billion last year.

Delphi, which was spun off from GM in 1999, emerged from bankruptcy in 2009. Once the largest U.S. auto suppliers, it went bankrupt in 2005 after struggling with debt.

DEAL DRIVERS

The deal, valued at 765 million euros and expected to close by the year-end, will add about 24 cents per share to Delphi's 2013 earnings, excluding acquisition-related costs, Delphi said.

The acquisition will result in total annual synergies of $80 million, which would be fully achieved in 2015, the Troy, Mich.- based Delphi said.

The company intends to finance the deal through cash on hand and debt. It had cash and equivalents of $1.4 billion and net debt of $740 million as of last year.

Deutsche Bank Securities Inc is advising Delphi, while N. M. Rothschild & Sons Ltd and Goldman Sachs are advising FCI Group.

Shares of Delphi, which has a market value of $9.20 billion, rose 3 percent to $28.50 in after-hours trading. They closed at $27.70 on Thursday on the New York Stock Exchange.

This article is copyrighted by Reuters