Japanese steering systems manufacturer JTEKT has agreed a put option with LEO III.-VV25-A for the sale of its European automotive business
The proposed transaction covers all shares in seven consolidated subsidiaries involved in automotive components manufacturing and sales to original equipment manufacturers (OEMs).
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The businesses involved span multiple regions, including JTEKT Europe in Irigny and Chevigny-Saint-Sauveur and JTEKT Column Systems France in Valentigney.
They also comprise JTEKT Czech Republic in Pardubice, JTEKT Automotive Morocco in Tangier, JTEKT Torsen Holdings and JTEKT Torsen Europe in Strepy-Bracquegnies, and JTEKT Torsen North America in Rochester.
LEO III.-VV25-A has undertaken to acquire the business and the subsidiaries if JTEKT exercises the put option after completing the required consultation with the works councils of JTEKT EUROPE and JTEKT Column Systems France in France.
If exercised, the parties will proceed to sign a definitive sale and purchase agreement.
JTEKT said the potential divestment aligns with its Second Medium-term Management Plan for the 2024–2026 fiscal period, which includes restructuring of global operations.
In Europe, the company is seeking to recover profitability through restructuring measures, consolidation and margin enhancement.
In its statement, the company said: “In our Second Medium-term Management Plan for the period from Fiscal Year 2024 through 2026, JTEKT is planning to strengthen its management and business structure by restructuring its global structure.
“We will pursue our internal reform through optimising our strategies and business structure according to the market environment in each region and continue proposing solutions to meet demand from customers.”
The company stated it will continue internal reforms to optimise its business structure in line with regional market conditions while maintaining customer-focused solutions.
JTEKT was formed in January 2006 through the merger of Koyo Seiko and Toyoda Machine Works.
According to its website, JTEKT operates roughly 150 subsidiaries and employs about 50,000 people across around 30 countries and regions.
The company also provides products such as sensors, bearings and machine tools.
