Valeo to buy parts unit of ITT Industries in U.S

Article Abstract:

Valeo SA, the second-largest maker of auto parts in Europe, is acquiring the Auburn Hills, MI-based components unit of ITT Industries Co. for $1.7 billion. In March 1998, ITT Industries said it was considering selling the electrical systems division, which had $1.9 billion in 1997 revenues, and a brake and chassis operation to concentrate on more lucrative operations. The acquisition strengthens Valeo's presence in North America and Germany and places it among the world's 10 largest makers of car parts. The purchase will boost Valeo's sales by 35%. Valeo said new equity will finance two-thirds of the purchase price, with the rest going to debt.

Comment:

Second-largest maker of auto parts in Europe is acquiring components unit of ITT Industries Co for $1.7 bil

Acquisitions & mergers, ITT Industries Co.

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Pernod weighs selling Yoo-Hoo after it unlods Orangina brand

Article Abstract:

Pernod-Ricard SA is considering the likely sale of its US unit Yoo-Hoo Chocolate Beverage Corp. after divesting the Orangina soft-drink brand. The move is in line with Pernod's plan to concentrate on its core business of spirits and wines by selling off its foreign soft-drinks business. Yoo-Hoo was acquired by Pernod in the late 1980s to gain a distribution network for the Orangina brand in the US. Patrick Ricard, chairman of Pernod, said that while no decision has yet been made regarding the sale of Yoo-Hoo, it makes sense to divest the business in keeping with the company's strategy.

Comment:

Is likely to be sold by Pernod-Ricard SA as part of its strategy to focus on its core business of wines and spirits

Soft Drink Manufacturing, Chocolate Soft Drinks, Chocolate drinks, Pernod Ricard S.A., Yoo-Hoo Chocolate Beverage Corp.

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Valeo looks to U.S. market for new deals

Article Abstract:

Valeo S.A., France's largest auto parts company, aims to expand its presence in the US by acquiring companies there. Company CEO Noel Goutard said the company is prepared to issue new stock in case it finds an attractive takeover target. He noted that the company last tapped the capital markets in 1988-89. Speculations have it that Valeo is eyeing one of these two companies: ITT Automotive, the brakes division of ITT Industries Inc.; or Meritor Automotive Inc., a spin-off of Rockwell International Corp.

Comment:

Aims to expand its presence in the US by acquiring companies there

Strategy & planning

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