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Valeo Negotiates the Sale of its Wiring Harness Activity to Leoni
PARIS, September 4 /PRNewswire/ -- Valeo (OTC: VlEEY)today announced that it is in negotiation with Leoni regarding the possible sale of its wiring harness activity, Valeo Connective Systems, which generated sales of 545 million euros and an EBITDA of 36 million euros in 2006. It employed 11,700 people at 12 industrial sites, including 9 in cost-competitive countries at 30 June 2007. Subject to consultation of the employee representative committees and approval by the antitrust authorities, the negotiation could be completed by year end. The divestiture of the wiring harness activity is in line with Valeo's strategy, announced at the Annual General Meeting of Shareholders, to focus its product offer on solutions in the Domains of Driving Assistance, Powertrain Efficiency and Comfort Enhancement, backed by its strong competitive position and diversified customer base. This sale is a step in the plan to divest activities amounting to around 2 billion euros of sales by the end of 2008. Leoni is a world leader in the wiring business for different industries, and the acquisition of Valeo Connective Systems would make it European leader for automotive wiring with a broad customer base. Valeo is an independent industrial group dedicated to the design, production and sale of components, integrated systems and modules for cars and trucks. It is one of the world's leading automotive suppliers. The Group has 133 production sites, 67 R&D centers, 9 distribution platforms, and employs 72,300 people in 29 countries. For more information about the Group and its activities, please visit our web site http://www.valeo.com For all additional information, please contact: Kate Philipps Group Communications Director Tel: +33-1-40-55-20-65 Rémy Dumoulin Investor Relations Tel: +33-1-40-55-29-30
