Valeo has signed an agreement to acquire the engine electronics business of Johnson Controls for €330 million euros, financed by its cash resources.
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The business designs, produces and sells engine management systems, engine control units & electric motor drives and engine components, including injectors, ignition and emission control components and sensors. It employs around 2,000 people in France with a head office and R&D center in Pontoise and plants in Sablé and Sainte Florine. In its September 2004 fiscal year it generated revenues of €426 million.
“JCEED’s expertise in engineering, engine control and power electronics represents a perfect complement for Valeo’s activities and reinforces our electronics expertise,” said Valeo chairman and CEO Thierry Morin.
These activities will complement several of Valeo’s existing businesses, in particular its powertrain efficency domain within which it develops systems for cleaner, more efficient and more economical vehicles. The domain will benefit from JCEED’s expertise in the areas of electronic management of engine cooling, power electronics for starter-alternators, electrical actuators for clutches and automated manual transmissions and exhaust gas recirculation (EGR) systems. Valeo’s driving assistance domain, which provides systems for improved security, will also take advantage of this know-how in electronic control units, for example in reversible wiper systems and advanced front lighting systems.
The transaction is expected to be completed in the first quarter of 2005.
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