At what enterprise value was VARROC LIGHTING SYSTEMS (VLS) acquired in 2022?

During the acquisition of VARROC LIGHTING SYSTEMS (VLS) by PLASTIC OMNIUM in 2022, the company was valued at an estimated revenue multiple of below 5x. The transaction's Enterprise Value is estimated to be in the range of 500M - 1.5b EUR. By registering for free, you get access to complete and exact transaction details including enterprise value, revenue, and EBITDA. Additionally, our database shows that the Industry & Manufacturing industry currently tracks an average EBITDA multiple of 10.9x, providing a valuable benchmark for this transaction.

What was the EV/EBITDA of VARROC LIGHTING SYSTEMS (VLS) when it was acquired by PLASTIC OMNIUM?

The exact EV/EBITDA multiple for VARROC LIGHTING SYSTEMS (VLS) is available on mynth capital. For comparison, the Industry & Manufacturing sector currently shows an average EBITDA multiple of 10.9x. Join our community for free to access full valuation data and industry trends.

What was the revenue of VARROC LIGHTING SYSTEMS (VLS) at the time of the deal?

The revenue of VARROC LIGHTING SYSTEMS (VLS) at the time of the deal is estimated to be in the range of 450M - 900M EUR. Register for free to access the full transaction report and exact valuation multiples.

What is Enterprise Value (EV)?

Enterprise Value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization. EV includes in its calculation the market capitalization of a company but also short-term and long-term debt as well as any cash on the company's balance sheet.

What is the EV/EBITDA multiple and why is it used?

The EV/EBITDA multiple is a financial ratio that compares a company's Enterprise Value (EV) to its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). It is widely used in M&A and valuation because it allows for comparisons between companies with different capital structures and provides a clear view of operational profitability.

How is the data for the VARROC LIGHTING SYSTEMS (VLS) acquisition sourced and is it reliable?

Mynth data is contributed by a professional community of M&A and Private Equity experts. Each transaction, including the VARROC LIGHTING SYSTEMS (VLS) deal, is systematically cross-verified by our team using private deal documents and official sources. You can also find the official press release for this transaction here: https://www.opmobility.com/wp-content/uploads/2022/04/plastic-omnium-acquires-varroc-lighting-20220429-en.pdf

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Home Database Industry & ManufacturingVARROC LIGHTING SYSTEMS (VLS)

10/2022

VARROC LIGHTING SYSTEMS (VLS)

Acquired by

PLASTIC OMNIUM

INDIA Automotive / Auto Parts & Suppliers / Auto Parts & Systems EV 500M - 1.5b EUR

VARROC LIGHTING SYSTEMS (VLS) acquired by PLASTIC OMNIUM

INDIA Automotive / Auto Parts & Suppliers / Auto Parts & Systems EV 500M - 1.5b EUR

Context

Plastic Omnium has signed an agreement with Varroc Engineering Limited to acquire 100% of its automotive lighting business, Varroc Lighting Systems (VLS). This carve-out transaction comes at a time when the target company is experiencing financial difficulties, as evidenced by its EBITDA margin turning negative in 2021. The transaction was financed entirely in cash. The transaction was fully self-financed in cash and includes VLS operations in Europe, the Americas, North Africa, and an R&D center in India. The strategic rationale for the acquisition is to position Plastic Omnium as a major global player in the automotive lighting market (a segment projected to reach ~$42bn by 2027). By combining VLS with the recently acquired AMLS (ams OSRAM Automotive Lighting Systems), Plastic Omnium has created a new Lighting division with pro-forma annual revenues of approximately €1 billion. This integration allows the Group to provide "end-to-end" exterior systems that merge lighting with bumpers and body panels, enhancing cross-selling opportunities and design flexibility for OEMs. Plastic Omnium has implemented a detailed turnaround plan for VLS, focusing on operational excellence, cash optimization, and quality processes to bring its profitability in line with Group standards. The acquisition is expected to be EPS accretive within 12-24 months, transforming Plastic Omnium into a comprehensive solutions provider for the smart mobility era.

VARROC LIGHTING SYSTEMS (VLS), which reported an EBITDA margin of LOGIN in 2021, is valued in this transaction at an EV/EBITDA multiple of LOGIN, a level to compare with the average currently observed in the Industry & Manufacturing sector (10.9x).

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.

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Target

Varroc Lighting Systems (VLS) is a top-10 global Tier 1 automotive lighting supplier specializing in advanced exterior lighting solutions. The company’s comprehensive product portfolio includes high-performance headlamps, rear lamps, optical system development, electronic control units, and specialized lighting software. VLS operates a robust industrial footprint with 8 manufacturing plants located primarily in best-cost countries across Europe, the Americas, and North Africa, supported by 8 dedicated R&D centers. Its value proposition is built on high-tech engineering capabilities aligned with automotive megatrends such as active safety, sophisticated styling, and electrification (BEV). With approximately 6,500 employees, including over 800 engineers, VLS serves a diversified global customer base of leading OEMs. Its strategy centers on providing scalable, innovative lighting technologies that enhance vehicle aesthetics and functional safety, positioning the company as a critical partner for manufacturers transitioning toward next-generation smart and autonomous vehicle platforms.

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REFERENCES

Valuation range: EV 500M - 1.5b EUR

Revenue range: 450M - 900M EUR

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of VARROC LIGHTING SYSTEMS (VLS) by PLASTIC OMNIUM are reserved for mynth community members. Register for free to unlock full data.

Authors: mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).

Press release: view release

Acquirer: plastic omnium