Aptiv acquires 85% stake in Intercable Automotive Solutions for $605 million in EV tech push

Auto parts supplier Aptiv is acquiring an 85% stake in the Intercable unit as part of its push to expand into electric vehicle (EV) business. In an announcement on Tuesday, Aptiv said it has agreed to acquire an 85% equity stake in Intercable Automotive Solutions, a subsidiary of Intercable, for 595 million euros ($605.71 million). The deal will allow Aptive to gain access to technology used in EVs.

Intercable Automotive Solutions was founded in 1972 by the Mutschlechner family. As part of the deal, the Mutschlechner will retain a 15% ownership interest in the business. “We are very excited about the opportunities ahead,” adds Intercable’s CEO, Klaus Mutschlechner, who will continue to lead Intercable Automotive Solutions in his current role.

The deal will also enable Aptiv to enhance its position in vehicle architecture systems by leveraging Intercable’s automated manufacturing processes, innovative product design, and strategic relationships with key European automotive OEMs.

Based in Bruneck, Italy, Intercable manufactures high-voltage busbars that carry more electrical power than traditional cables. It has manufacturing facilities in Europe and Asia. With over €250 million in 2022 estimated sales, the company also designs and manufactures innovative solutions that address the most complex challenges in vehicle electrification.

The transaction is expected to close before the end of 2022 and will be accretive to EPS in 2023. Upon completion, Intercable Automotive will operate as a stand-alone business unit within Aptiv’s (APTV) Signal & Power Solutions segment.

Founded in 1994, the Irish-American company is a global supplier of automotive parts. Headquarters in Dublin, Ireland, the company has more than 190,000 people across 127 manufacturing facilities and 12 major technical centers worldwide.