The FTE automotive acquisition will allow Valeo to expand its offering of active actuation systems for transmissions, a strategic and fast-growing market driven by dual clutch technology and the growth of hybrid vehicles.

Valeo has signed an agreement with Bain Capital Private Equity, owner of FTE automotive, to purchase 100 percent of FTE automotive for a purchase price corresponding to € 819.3 million (approximately $931 million USD), representing an estimated EBITA multiple of 8 times for 2016.

FTE automotive, headquartered in Germany, is a leading producer of clutch and gear actuators. According to Valeo, the company offers a highly complimentary product portfolio and customer base. The FTE automotive acquisition will allow Valeo to expand its offering of active actuation systems for transmissions, a strategic and fast-growing market driven by dual clutch technology and the growth of hybrid vehicles. FTE automotive also will strengthen Valeo’s aftermarket business. The acquisition of FTE automotive is expected to be accretive from the first year.

In 2015, FTE automotive generated around €500 million ($568 million USD) in sales, of which a third in the aftermarket business, and 30 percent outside Europe. The company has 3,700 employees and a diversified industrial footprint in eight countries, including Germany, the Czech Republic, Slovakia, Mexico and China.

The transaction is subject to the approval of the European and Brazilian anti-trust authorities and is expected to close in the fourth quarter of 2016 or in the first quarter of 2017.

Commenting on the acquisition, Jacques Aschenbroich, Valeo chairman and CEO, said, “The acquisition of FTE automotive is perfectly aligned with Valeo’s CO2 emission reduction strategy. FTE automotive is a fast-growing company and a technological leader with a proven ability to combine growth and profitability. It will strengthen Valeo’s Powertrain Systems Business Group. We are looking forward to welcoming FTE’s 3,700 employees to Valeo.”