French technology company Valeo today announced that it has signed an agreement with Siemens eAutomtive to hold 100% share in Valeo Siemens eAutomotive.
The acquisition of Siemens’ 50% stake in Valeo Siemens eAutomotive was made for a cash amount of €277 million on a debt-free basis – €741 million (after taking into account the net cash-out for the acquisition of shares from Siemens.
According to a press release from the company, the integration of Valeo Siemens eAutomotive within Valeo’s Powertrain Systems Business Group will come into force after July 1, 2022. The new combined entity will aim for more than 12% annual growth over the 2021-2025 period. In addition, there will be €120 million in annual synergies, representing 1.9% of sales, and the synergies to be fully realised from 2025. Accordingly, the pro forma EBITDA margin to increase rapidly from 5.8% in 2021 to more than 8% in 2022 and more than 11% in 2025, the company said.
Christophe Périllat, Chief Executive Officer, Valeo, said, “The electrification of automotive mobility is accelerating. And so is Valeo. This transaction and the integration of Valeo Siemens eAutomotive within our Powertrain Systems Business Group strengthen our position as a major player in electrification by creating a champion equipped with all the associated technologies. It also makes us more innovative, competitive and profitable as we play our part in decarbonising mobility.”
The value of the high-voltage electrification market is set to increase significantly in the coming years and will represent €92 billion in 2030 (annualised growth of 17.5% over the 2021-2030 period). About 40% of this market will be outsourced to automotive suppliers. By 2030, the market for vehicles equipped with high-voltage electric powertrain systems (BEVs and PHEVs) will account for 35% of automotive production worldwide.
Valeo Siemens eAutomotive is a recognised technological and industrial leader, present on the main mass-market and premium platforms of 21 automakers. By the end of 2022, more than 90 electric and plug-in hybrid models will be fitted with Valeo’s electric powertrain systems, motors, inverters or onboard chargers.