Valeo has recently purchased German clutch and gear actuators manufacturer FTE Automotive from Bahrain Capital Private Equity for €819.3m. The transaction, which is subject to the approval of Brazilian and European anti-trust authorities, is expected to close in the fourth quarter of the year or in the first quarter of next year.
The acquisition will reinforce Valeo’s aftermarket business and allow the company to expand its offering of active actuation systems for transmissions. FTE automotive has successfully produced nearly €500m in sales last year, of which a third were in the aftermarket business, and 30 percent outside Europe.
The company employs 3,700 people with an industrial footprint in eight countries, including Slovakia, Germany, Czech Republic, China and Mexico.
In a statement, Valeo chairman and CEO Jacques Aschenbroich said that the purchase of FTE Automotive is ideally aligned with Valeo’s CO2 emission reduction strategy. He noted that FTE Automotive is a fast-growing firm and a technological leader with a proven ability to merge growth and profitability. “It will strengthen Valeo’s Powertrain Systems Business Group.”
According to FTE Automotive Group CEO Andreas Thumm, the combination of FTE Automotive and Valeo is an outstanding fit which offers new upcoming opportunities for their company.
Last year, Valeo generated €14.5bn in sales and invested over 10 percent of its original equipment sales in R&D.
Overall, the company has 134 facilities, 17 research centers, 15 distribution platforms, and 35 development centers. It has 82,800 employees in 30 countries worldwide.
Hamid Moaref has always been fascinated by cars and the automotive industry. His family has a longstanding association with the industry and has been in the tire business for the past 35 years. Raised in Dubai, Hamid attended Capilano University in Vancouver where he graduated with a BBA in marketing before attending an intensive course in magazine publishing in 2005. He has been the publisher and chief editor of Tires & Parts magazine for the past ten years.
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