Valeo has confirmed it has signed a contract with Leoni selling its wiring harness unit, Valeo Connective Systems, for EUR255m.
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The unit had sales of EUR545m and an EBITDA of EUR36m in 2006 and employs 11,700 people at 12 industrial sites, including nine in “cost-competitive” countries.
Valeo said the sale was in line with its strategy to focus on driving assistance, powertrain efficiency and comfort enhancement technology.
The sale will result in a capital loss of around EUR51m for Valeo and is expected to close by the end of the year.
The buy would make Leoni the leading European supplier of automotive wiring systems and give the German company access to the French automotive sector.
