Analysis
Valeo Acquires Electric Supercharger Technology
As part of its strategy of developing solutions to reduce CO2 emissions, Valeo has acquired the Variable Torque Enhancement System (VTES) business of British automotive technology development company Controlled Power Technologies (CPT).
With“We are very pleased that CPT’s VTES business is joining Valeo,” commented Valeo Chief Executive Officer Jacques Aschenbroich. “This vibrant, innovative company, backed by an impressive bench of talent, has demonstrated its ability to develop highly effective solutions for reducing CO2 emissions. With this acquisition, Valeo confirms its unique position in CO2-reducing technologies, in line with the Group's strategy.
“CPT has worked with Valeo over a 3 year period to define electric supercharging system requirements. Our automotive customers wanted clarity about future plans for the VTES product and a sale to Valeo was the best solution to enable our VTES technology to reach its full potential,” commented CPT Chief Executive Officer Nick Pascoe. “It also validates our approach to technology development, which we apply to all our products.”
VTES will be integrated into Valeo’s Powertrain Systems Business Group with immediate effect.
This acquisition boosts Valeo’s commitment to innovation, which is reflected in an R&D budget of more than €600 million. The Group has filed more than 600 patents this year, making it the fourth-ranked filer in France.
CPT was advised on the transaction by Turquoise International (corporate finance) and Matthew Arnold Baldwin LLP (legal & tax).