PLASTIC OMNIUM
Sale of the automotive interior business unit to Visteon / Purchase price EUR 457m
Once again, a global US group is moving into the European plastics automotive supplier business. The French plastics processing group Plastic Omnium (HQ: Rue du Parc 1, F-92593 Levallois) is selling its interior automotive applications business unit to US multinational automotive supplier Visteon (HQ: Dearborn, MI, USA) for EUR 457m. The business unit achieved sales of EUR 425m in 1998, with a payroll of some 3,700 in France, Spain, Italy and the UK.
The French company gives its “strategic reorientation” as the reason for the sale. Its focus is now on high-growth business units, including automotive exterior parts, fuel systems, products and services for local authorities (dustbins) and fluoroplastics. Sales in the year 2000 are expected to sink to EUR 1.26bn, down from 1.4bn in 1998, due to the sell-off. (See PIE 05, 1999 for full financial details on 1998).
Plastic Omnium repeatedly has been named as a takeover target in the global automotive supplier business. This possibility now seems considerably reduced, especially as the the sale of the interior applications business will make a major contribution towards reducing its mountain of debt. In a statement, the company underlined its intention to remain independent.
Visteon´s group sales totalled USD 17.8bn in 1998, and the group employs more than 77,000 in 21 countries. With its acquisition of the Plastic Omnium business unit, Visteon is expanding its business in Europe to 23,000 employees in 18 technical and sales centres and 34 production plants. European sales total USD 3.1bn. The US-based company will now be the European leader in cockpits, ahead of SAI Automotive. Together the two will hold some 40% of the European market, says the US consultancy Robert Eller Associates Inc (696 Treecrest Drive, Akron, OH 44333, USA) in a statement on the Plastic Omnium-Visteon deal (PIE-No. 43762).
The French company gives its “strategic reorientation” as the reason for the sale. Its focus is now on high-growth business units, including automotive exterior parts, fuel systems, products and services for local authorities (dustbins) and fluoroplastics. Sales in the year 2000 are expected to sink to EUR 1.26bn, down from 1.4bn in 1998, due to the sell-off. (See PIE 05, 1999 for full financial details on 1998).
Plastic Omnium repeatedly has been named as a takeover target in the global automotive supplier business. This possibility now seems considerably reduced, especially as the the sale of the interior applications business will make a major contribution towards reducing its mountain of debt. In a statement, the company underlined its intention to remain independent.
Visteon´s group sales totalled USD 17.8bn in 1998, and the group employs more than 77,000 in 21 countries. With its acquisition of the Plastic Omnium business unit, Visteon is expanding its business in Europe to 23,000 employees in 18 technical and sales centres and 34 production plants. European sales total USD 3.1bn. The US-based company will now be the European leader in cockpits, ahead of SAI Automotive. Together the two will hold some 40% of the European market, says the US consultancy Robert Eller Associates Inc (696 Treecrest Drive, Akron, OH 44333, USA) in a statement on the Plastic Omnium-Visteon deal (PIE-No. 43762).
31.05.1999 Plasteurope.com [18005]
Published on 31.05.1999