EQT to acquire the heavy duty engine cooling division of Valeo
EQT Opportunity (“EQT”) has agreed to acquire the heavy duty engine cooling division of Valeo, the French automotive Group.
The acquired operations are comprised of some 940 employees in three manufacturing sites – Mjällby and Linköping in Sweden and Jamestown, NY, in the United States. The business supplies engine cooling solutions to leading manufacturers of trucks, buses, off-highway equipment and industrial diesel engines. In 2007, the division generated sales of 176 million Euros.
“We are very pleased to team up with a reputable investor and look forward to continue developing the business together with EQT. EQT’s industrial approach will be valuable for us when implementing our strategy for the future” says Lars Larsson, Managing Director of Valeo Engine Cooling AB.
“The business is well positioned to benefit from the increasing need for cooling solutions in commercial vehicle and industrial end markets. We look forward to working with the management and the employees in the development of the business into a strong and integrated global provider of heavy duty engine cooling solutions” says Paul Schrotti, Partner at EQT Partners.
The investment is the sixth by EQT Opportunity that was launched in the beginning of 2006. The fund, which has committed capital of 372 million Euros, invests in medium sized companies which have a sound underlying business and a clear value creation potential. The scope of investments ranges from turn-arounds to special situations such as the current one where a successful business needs support from a dedicated owner to achieve an ambitious growth strategy and reach its full potential.