September 5, 2007 -- As part of an extensive restructuring programme, French car parts maker Valeo yesterday announced the sale of its electrical wiring activities to Leoni. The deal is expected to be completed before the end of the year for an undisclosed sum, enabling the German company to become the European leader. The division, which employs 11,700 people at 12 sites, generated turnover of 545m euros in 2006, with EBITDA of 36m euros.
Under pressure from leading shareholder Pardus, Valeo is planning to sell assets worth 2bn euros between now and the end of 2008. The company is targeting an operating margin of 6 per cent by 2010, compared with 3.2 per cent in the first half of 2007.
Source: La Tribune
