Electronics Production | October 16, 2007
Leoni buys wiring harness activity from Valeo
Valeo has signed a contract with Leoni regarding the sale of its wiring harness activity, Valeo Connective Systems, for an enterprise value of 255 million euros.
The activity generated sales of 545 million euros and an EBITDA of 36 million euros in 2006. It employs 11,700 people at 12 industrial sites, including 9 in cost-competitive countries. The divestiture of the wiring harness activity is in line with Valeo’s strategy, initiated in 2005 and confirmed at the 2007 Annual General Meeting of Shareholders, to reinforce its offer in the Domains of Driving Assistance, Powertrain Efficiency and Comfort Enhancement. This sale is another step in the implementation of this strategy through targeted divestitures and acquisitions. This sale will result in a capital loss of around 51 million euros for Valeo. The closing of the sale should occur by year end following clearance from the anti-trust authorities.