Valeo to acquire Osram’s stake in Valeo Sylvania JV

Article by Anita Panait, on January 13, 2014

Valeo will purchase the stake it does not yet own in its lighting joint venture Valeo Sylvania from partner Osram for $104 million.  The purchase price is around three times the Valeo Sylvania's earnings before interest, taxes, depreciation and amortization, Valeo said in a statement. "The takeover of Osram's shares in Valeo Sylvania represents a major step in Valeo's strategy to increase its position as a global leader in automotive lighting," Valeo chief executive Jacques Aschenbroich said.

The company expects the agreement to be completed by the end of January. IHS Automotive analyst Andrew Herzig remarked that the purchase will help “align Valeo's automotive lighting presence worldwide by adding North American sales to the rest of its lighting business worldwide."

Herzig, whose specialization lies in European component forecasts and analysis, estimates that Valeo Sylvania is already one of the top five suppliers of headlamps and tail lights in North America.  HIS estimates that Valeo is one of the largest European auto lighting company along with Magneti Marelli and Hella.

Herzig expects Valeo to find "big opportunities" in global automotive exterior lighting in the coming decade, as LEDs are increasingly becoming in demand. "Adaptive headlamps have and will continue to develop with the advantages that LEDs offer," Herzig said. Valeo Sylvania has sites in Indiana and Queretaro, Mexico.

Topics: valeo

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

The highlight of this year’s Consumer Electronics Show may be based on some of these keywords---connectivity, integration and partnership. Just like in the previous year, you’ve probably heard and read...
by - January 16, 2017
Less than three weeks to go and the Super Bowl LI – one of the most awaited and most watched sports events in television – will commence on February 5,...
by - January 16, 2017
New Tesla vehicles will have to pay when charging at any of the carmaker’s Supercharger stations once they exceed their annual limits. This comes as Tesla Motors announced revisions in...
by - January 16, 2017
Off-road driving with an open air vehicle provides another kind of experience for many off-road enthusiasts and fans. For this sake, Ford is planning to offer a version of the...
by - January 16, 2017
For those who love driving, future autonomous cars should be like the Toyota Concept-i that is drawing in a multitude of visitors at the 2017 Consumer Electronics Show in Las...
by - January 15, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries