Transaction overview
Trialon Corporation acquired Delphi Technologies' Customer Technology Center Michigan (Auburn Hills) on January 14, 2020, expanding its testing services in Greater Detroit. The transaction's value was undisclosed, but it marked Trialon’s second acquisition within a month as part of Resilience Capital Partners’ strategy to grow the company.
Deal structure and financing
The deal specifics regarding equity and debt were not disclosed; however, given that this is an add-on acquisition by Resilience Capital Partners, it likely involved a mix of existing equity from Trialon and new capital raised through private placement or bridge loans. The seller, Delphi Technologies, did not retain any stake in the acquired business. Regulatory filings for HSR (Hart-Scott-Rodino) were not publicly disclosed, suggesting that if they were made, the deal fell under a threshold requiring a shorter review period.
Strategic context
Resilience Capital Partners has been actively expanding Trialon’s service offerings since acquiring it in 2016. The acquisition of Delphi Technologies' Customer Technology Center Michigan aligns with this strategy by broadening Trialon's testing capabilities, particularly in vehicle emissions and engine dynamometer tests. Located strategically near the heart of Detroit's automotive industry, the acquisition enhances Trialon’s competitive position as an independent provider of validation services to automotive manufacturers.
Historically, Delphi Technologies has sought to streamline its operations and focus on core business areas, prompting the sale of non-core assets like testing facilities. The partnership between Trialon and Delphi over several years established a mutual trust that facilitated this transaction. From a valuation standpoint, comparable transactions in the industrial goods sector suggest the deal likely fell within a reasonable range for the scope and scale of acquired assets.
Regulatory path
The U.S. Department of Justice (DOJ) antitrust division would have reviewed the transaction under HSR if required filings were made, given the nature and size of Trialon's operations in testing services. However, specific details regarding regulatory scrutiny are not publicly available. The deal’s location within a concentrated automotive manufacturing hub in Michigan may have prompted additional review but does not appear to have necessitated significant regulatory action or remedies based on current information.