Brief: Plastic Omnium Acquires Varroc's Automotive Lighting Systems Business

Varroc Engineering

29/04/2022 05:42

April 29 (Reuters) - COMPAGNIE PLASTIC OMNIUM SE  PLOF.PA :
    * ACQUIRES VARROC’S AUTOMOTIVE LIGHTING SYSTEMS BUSINESS AND
CREATES AN INTEGRATED LIGHTING PLAYER ENABLING DIFFERENTIATING
SOLUTIONS FOR EXTERIOR SYSTEMS
    * CREATION OF A NEW STRATEGIC LIGHTING DIVISION IN 2022 WITH
REVENUE OF C. €1BN, COMBINING AMLS (AMS OSRAM AUTOMOTIVE
LIGHTING SYSTEMS) AND VLS
    * THIS ACQUISITION WILL PROVIDE US WITH AN EXTENSIVE
LIGHTING
PRODUCT PORTFOLIO, A BALANCED FOOTPRINT ACROSS BEST-COST
COUNTRIES AND SIGNIFICANT CROSS-SELLING OPPORTUNITIES-CEO
    * HAS AGREED WITH VARROC ENGINEERING LIMITED (MAHARASHTRA,
INDIA)
TO ACQUIRE ITS AUTOMOTIVE LIGHTING BUSINESS, VARROC LIGHTING
SYSTEMS (VLS), FOR AN ENTERPRISE VALUE OF €600M
    * THE ACQUISITION WILL BE FULLY SELFFINANCED AND PAID FOR IN
CASH
BY PLASTIC OMNIUM
    * THIS PLAN AIMS TO RETURN VLS TO GROWTH IN 2022, WITH THE
EBITDA
MARGIN REACHING  DOUBLE-DIGITS IN THE SHORT TO MEDIUM-TERM
    * ACQUISITION WILL POSITION PLASTIC OMNIUM AS MAJOR PLAYER
IN THE
LARGE AND CONTINUOUSLY EXPANDING LIGHTING MARKET, WHICH IS
EXPECTED TO REACH C.$42BN BY 2027 VERSUS C.$31BN IN 2021 (CAGR
+5%)
    * CLOSING OF THE ACQUISITION IS EXPECTED IN H2 2022 AND IS
SUBJECT
TO OBTAINING CUSTOMARY ANTITRUST  AND REGULATORY APPROVALS
    * ACQUISITION WILL HAVE LIMITED IMPACT ON THE GROUP
OPERATING
MARGIN ON A PROFORMA BASIS IN 2022

Source text for Eikon:  urn:newsml:reuters.com:*:nNDL9P6SV6
Further company coverage:  PLOF.PA 

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