Aptiv plans to separate its EDS business
Aptiv says that it plans to separate its Electrical Distribution Systems business (EDS), creating two independent companies, each positioned to serve their customers and create value for shareholders.
“We have a long track record of transforming Aptiv through operational changes and organic and inorganic portfolio shifts to best position our businesses in a dynamic environment. Today’s separation announcement represents the next step in our transformation journey. By enhancing strategic and operating focus, we are positioning both Aptiv and EDS to more effectively address the evolving needs of our customers and to further capitalize on market opportunities, which we believe will drive even greater success and value creation for both companies,” says Kevin Clark, chairman and CEO in a press release.
The CEO continues to say that following completion of the transaction, Aptiv will have a portfolio of advanced software and hardware technologies and highly engineered, mission-critical products that are aligned with global mega trends.
"The result will be a high growth, high margin business with strong cash flow generation to support continued organic and inorganic investment in differentiated products and solutions and further penetration of adjacent markets, including aerospace and defense, telecommunications, commercial vehicle, and industrial, and return of excess capital to shareholders.”
Following the separation, Aptiv – comprising Advanced Safety & User Experience and the Engineered Components Group – will offer a full sensor-to-cloud technology stack, including open-architected ADAS and in-cabin user experience software platforms, and a range of interconnects and components that optimise the distribution of signal, power, and data for next-generation applications
