Valeo announced today the execution of a contract for the sale of its Access Mechanisms Business to Japan-based U-Shin for an enterprise value of 223 million euros.
Closing is subject to approval by the competition authorities and is expected to occur no later than March 31, 2013.
The Access Mechanisms Business, which is primarily mechanical based, comprises products such as locksets, steering column locks, handles and latches. Broadly present in Europe and South America the business is expected to generate 580 million euros in sales in 2012. It operates 12 plants and has 4,500 employees.
The proposed divestment is aligned with Valeo’s strategy of focusing on solutions to reduce CO2 emissions and on stepping up its development in Asia and in emerging markets.
U-Shin is one of Asia’s largest producers of automotive access mechanisms. Through the acquisition of Valeo’s Access Mechanisms Business, U-Shin would become a global market leader with a diversified customer base and a front-rank presence in Asia, Europe and South America.
