Varroc Engg to divest lighting biz in Americas and Europe to French firm

It has signed a Euro 600 million transaction with Compagnie Plastic Omnium

Varroc Engineering has signed a Securities Purchase Agreement (SPA) with Compagnie Plastic Omnium SE of France to divest its four-wheeler lighting systems operations in the Americas and Europe, the Aurangabad-based company said in a statement.

The Euro 600 million (Rs 4,836 crore) transaction will see Varroc divesting its lighting System operations in the US, Brazil, Mexico, Poland, Czech Republic, Germany, Turkey, and Morocco.

Varroc Lighting System had been a drag for the company for a few quarters now, and weighed on Varroc Engineering’s performance in the third quarter of FY22. During the quarter, a two per cent increase in India