Plastic Omnium completes the acquisition of Varroc Lighting Systems
Plastic Omnium has completed the acquisition of Varroc’s automotive lighting systems (VLS) business from Varroc Engineering Limited.
The EUR 520 million transaction was adjusted downwards by EUR 80 million to reflect weakened market conditions triggered by inflation and supply chain disruptions. VLS has been consolidated into Plastic Omnium's accounts as of October 7, 2022.
Varroc Lighting Systems achieved sales of approximately EUR 0.8 billion in 2021, and will be integrated alongside AMLS into Plastic Omnium's new Lighting division. The new division generated pro forma sales of approximately EUR 1 billion in 2021 and employs 7,000 people in 11 plants worldwide. The new Lighting division is targeting economic revenue of EUR 1.5 billion by 2027.
"With this acquisition, Plastic Omnium positions itself as a leading player across the entire lighting value chain with a broad range of products, from components to full headlamps and a balanced geographic footprint in cost-competitive countries. We are now able to provide unique differentiated solutions thanks to synergies between lighting and our front-end module and bumper activities," says Laurent Favre, Chief Executive Officer of Plastic Omnium, in a press release.
