Troy, Mich.-based auto supplier Delphi Automotive has offered $972 million to Bain Capital for the motorized vehicle division of French manufacturer FCI Global.
The deal, if completed, would be Delphi's first acquisition since emerging from Chapter 11 bankruptcy protection in October 2009.
The unit, which is referred to as MVL and makes vehicle parts connectors, represented 62 percent of 2011 revenue for FCI.
Delphi operates an R&D facility in Lockport, N.Y., with about 250 employees, after selling the neighboring Delphi Thermal radiator business back to GM in 2009.
The company has been profitable since 2010. It has concentrated on fuel-injection technology and other car parts in emerging markets such as China. The Asia-Pacific region accounted for $2.46 billion of the company's $16 billion in sales last year, according to a regulatory filing.
The acquisition must be approved by a French works council. The companies expect to complete it by year's end.
"This transaction will solidify Delphi's position as one of the premier global automotive suppliers and will create significant shareholder value," Delphi CEO Rodney O'Neal said in a statement, adding, "It broadens our mix of global customers."
It was not immediately clear how the deal would affect MVL's 6,800 employees, most of whom are based in "low-cost regions," according to an investor presentation.
Delphi plans to finance about 60 percent of the transaction with cash and 40 percent with credit.
Delphi estimated it could identify savings of $80 million by 2015 through the elimination of duplicate activities such as purchasing and product development.
MVL's 2011 revenue totaled 692 million euros, 54 percent of it from Europe, 23 percent from Asia, 19 percent from North America and 4 percent from South America.