(Bloomberg) -- ABC Technologies Holdings Inc. is nearing an agreement to buy British manufacturer TI Fluid Systems Plc for roughly £1 billion ($1.3 billion), according to people familiar with the offer.
ABC, which is backed by alternative investment firm Apollo Global Management Inc., and TI Fluid are likely to announce a recommended offer before a UK takeover deadline on Friday, said the people, who asked not to be identified because discussions are private.
Last month ABC increased its offer for TI Fluid to 200 pence per share, valuing the company at about £992 million, after previous proposals were rejected. TI Fluid at the time said that it confirmed to ABC that should a firm offer be made, it would be “minded to recommend it to shareholders.”
TI Fluid then extended the deadline for a firm offer to Nov. 22, before adding another week until Nov. 29 to give ABC time finalize talks, conduct due diligence and secure financing. Those issues have been addressed, paving the way for an agreed deal, the people said.
Shares of TI Fluid have gained 16% this year, giving the Oxford, England-based company a market value of about £888 million. Representatives for Apollo and TI Fluid declined to comment, while a spokesperson for ABC declined to comment.
TI Fluid makes thermal and fluid systems solutions for vehicles and has a presence in 27 countries, its website shows. Private equity firm Bain Capital is the largest shareholder and has been selling down its stake on the market, including at 135 pence a share in March.
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