Automotive Intelligence, the web for automotive professionals

   Search this site    by  FreeFind
.
 

 

This Week:

 

© 1998 - 2000 Copyright & 
Disclaimer

Automotive Intelligence,
www.autointell.com
All Rights Reserved .
For questions please contact
editor@autointell.com

Automotive Intelligence News

News of  May 05, 2000


 


Valeo: acquisition of Labinal's automotive business
.
Valeo concluded an agreement with SNECMA with a view to acquiring the automotive activities of the Labinal group. This transaction would take place following SNECMA's acquisition of Sopartech, which holds the majority of voting rights in Labinal.

Valeo would acquire all shares held by Labinal in Sylea, that is 52.9% of its capital, at a price of 54 euros per share, with dividend attached. Following the acquisition, Valeo would implement a price guarantee procedure for Sylea's minority shareholders ("garantie de cours"). Valeo would later acquire Labinal's Filtrauto filters and Telma driveline retarders businesses. The operations would be carried out in cash.

The acquired activities achieved 1999 sales of 1.4 billion euros and employ 16,000 people at 49 production sites. Sylea generates 44% of its sales in France, 53% in other European countries and 3% outside of Europe.

Following this transaction, the Valeo Group's pro-forma 2000 consolidated sales should exceed 10 billion euros, with electrical and electronics activities accounting for more than 60% of the total. Since 1998, Valeo has successively acquired in this sector ITT Electrical Systems in the U.S. and Germany, Mando Starters and Alternators in South Korea, and a stake in Ichikoh in Japan.

The acquisition of Filtrauto will strengthen the Group's presence on the aftermarket, while the Telma retarders business will benefit its truck activity.

Commenting on the transaction, NoŽl Goutard, Chairman & CEO of Valeo, stated: "This is a strategic operation for Valeo's electrical and electronics activities. The Group is consolidating its position as a systems supplier in this high-growth sector. The transaction will have an immediate accretive impact on Valeo's net earnings per share. It also leaves us room to maneuver in terms of other acquisitions."

The Board of Directors has approved the principle of this operation, which will be submitted to the Valeo Central Works Council and to the European Commission.

These operations remain subject to the usual conditions for this kind of transaction, which should be fulfilled by the end of June 2000.

(May 2, 2000)

 

[Homepage] [ News] [ Companies] [ Management] [ Publications] [ Events] [ Careers]
[Services] [Discussion] [ Guestbook] [ Search]

Hitometer