Lacroix exits North America in strategic shift
French electronics and technology group Lacroix plans to withdraw entirely from its North American electronics operations by the end of 2025, as part of a strategic shift aimed at consolidating its core businesses and eliminating persistent losses.
The decision comes on the heels of continued underperformance in the group's North American operation, which posted a 15.9% revenue decline in Q1 2025 compared to the same period last year. Lacroix's North American business operates facilities in Grand Rapids, Michigan, and Juarez, Mexico, recorded a negative EBITDA of EUR 13.5 million for fiscal year 2024. Annual revenue fell 15% to EUR 141 million.
The group cited several factors contributing to the decision, including the loss of several customer contracts and heightened geopolitical uncertainty, particularly the risk of increased US import tariffs.
"In this context, it has become evident that the operational recovery plan initiated for Electronics in North America would be insufficient to restore profitability," the company writes in a press release.
The exit strategy follows a commitment made in March 2025 to evaluate options to eliminate losses in the region by 2026. Lacroix has now mandated its North American unit to begin disengagement procedures immediately, in coordination with stakeholders. The company says that potential outcomes include a sale, operational shutdown, or even liquidation.
The North American business currently employs 1,251 people. Discussions with clients and suppliers are expected in the coming months to determine the most viable transition path.
Following the exit, Lacroix says it will focus on its remaining electronics operations in the EMEA region, as well as its environment division. The group expects the streamlined structure to reduce its exposure to the automotive sector, from 44% of total revenue in 2024 to less than one-third, and provide increased agility for future investments.