Valeo ties up the acquisition of actuator maker FTE Automotive

Nov 2, 2017   Tier Suppliers

The French automotive supplier has now received clearances from the European Commission and the Turkish Competition Authority to complete its acquisition of FTE Automotive.

FTE's product portfolio and customer base are highly complementary to Valeo's. The acquisition will enable Valeo to expand its offering of active hydraulic actuators, a strategic and fast-growing market that has notably benefited from the rise of hybrid and electric vehicles.

In 2016, FTE Automotive generated sales of around €550 million ($641 million). The company has more than 3,800 employees and a diversified manufacturing footprint in eight countries, including Germany, the Czech Republic, Slovakia, Mexico and China.

The acquisition of FTE will be accretive to Valeo's operating margin from year one, and Jacques Aschenbroich, Valeo's Chairman and Chief Executive Officer said: "With the acquisition of FTE Automotive, Valeo is positioning itself as the technological leader on the actuators market and thereby consolidating its CO2 emissions reduction strategy. This acquisition will help strengthen Valeo's Powertrain Systems business. We are happy to welcome FTE's 3,800 employees to the Valeo Group."

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