Valeo has announced that it will close the deal which will see the sale of its access mechanism business to Japan’s U-Shin today (24 May). According to a statement released by the company, the unit’s sale will be completed for an enterprise value of EUR203m.
The Access Mechanisms Business, which is primarily mechanical based, comprises products such as the locksets, steering column locks, handles and latches. Broadly present in Europe and South America, the business generated EUR620m in revenue in 2011. It operates 12 plants and has 4,500 employees.
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The proposed divestment is aligned with Valeo’s strategy of focusing on solutions to reduce CO2 emissions and on stepping up its development in Asia and the emerging markets.
U-Shin is one of Asia’s largest producers of automotive access mechanisms. Through the acquisition of Valeo’s Access Mechanisms Business, U-Shin would become a global market leader with a diversified customer base and a front-rank presence in Asia, Europe and South America.
