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) 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.