Varroc to focus on electronics, connectivity, EV product lines
In a bid to transform itself into a high-tech company and focus on the existing growth of electronics, connectivity, electrical vehicles (EVs) product lines and the 2-wheeler segment globally, Varroc Engineering Limited (VEL), is divesting its 4-wheeler lighting system operations in the Americas and Europe.
The Indian automobile component company, has signed a Securities Purchase Agreement (SPA) with Plastic Omnium SE of France to divest its 4-wheeler lighting systems operations in the Americas and Europe, a press release reads
The divestment is part of Varroc's strategy to align its resources with the high value and high growth primary markets in China, India, and the two-wheeler sector globally.
The EUR 600 million transaction will see Varroc divesting its lighting System operations in the USA, Brazil, Mexico, Poland, Czech Republic, Germany, Turkey, and Morocco.
Varroc will also continue to operate its China JV and other international 2-wheeler businesses in countries like Italy and Vietnam and global electronics businesses in Poland and Romania. The company says it is retaining its 4-wheeler lighting operations in Asia.
"Our immediate goal is to be future-ready with continued profitable growth in emerging sectors like the EV and high technology electronics. The divestment of our passenger car lighting operations in the Americas and Europe will be a win-win deal for Varroc and Plastic Omnium. For us, we unlock great value for all our shareholders, employees, and business partners as we plan for our next level of growth in the fastest-growing economies and auto sectors in the world. We will also continue to invest in our teams and people as we embark on the next phase of our growth," says Tarang Jain, Chairman & Managing Director of Varroc Engineering in the press release.