Varroc sells its four wheeler lighting biz to Plastic Omnium for 600 million euro ..
Varroc to focus on electronics, connectivity, EV product lines, and the 2-wheeler segment globally
Biznextindia : Varroc Engineering Limited (VEL), India’s leading automobile component company, has signed a Securities Purchase Agreement (SPA) with Compagnie Plastic Omnium SE of France to divest its 4-wheeler lighting systems operations in the Americas and Europe.
The divestment is part of VEL’s (Varroc) strategy to align its resources with the high value and high growth primary markets in China, India, and the two-wheeler sector globally.
The Euro 600 million transaction will see Varroc divesting its lighting System operations in the USA, Brazil, Mexico, Poland, Czech Republic, Germany, Turkey, and Morocco Varroc will also continue to operate its China JV and other international 2-wheeler businesses in countries like Italy and Vietnam and global electronics businesses in Poland and Romania. The company is retaining its 4-wheeler lighting operations in Asia. The planned divestment of Varroc’s 4-wheeler lighting systems businesses in the Americas and Europe will ensure enhanced shareholders’ value, sustainable growth, and further development of its R&D facilities and engineering capabilities.
Commenting on the development, Tarang Jain, Chairman & Managing Director of Varroc Engineering said: “Our immediate goal is to be future-ready with continued profitable growth in emerging sectors like the EV and high technology electronics. The divestment of our passenger car lighting operations in the Americas and Europe will be a win-win deal for Varroc and Plastic Omnium. For us, we unlock great value for all our shareholders, employees, and business partners as we plan for our next level of growth in the fastest-growing economies and auto sectors in the world. We will also continue to invest in our teams and people as we embark on the next phase of our growth.