The opportunity fund of EQT, a Nordic buyout firm, has bought the engine cooling division of Valeo, a French automotive group, for an undisclosed sum, according to a statement.
The division has 940 employees in three manufacturing sites two of which are in Sweden and one is in the United States. In 2007, the division had sales of €176 million ($277.3 million).
The company supplies engine cooling solutions to manufacturers of trucks, buses, off-highway equipment and industrial diesel engines.
The investment is the sixth by EQT’s €372 million opportunity fund, which was launched at the beginning of 2006. The fund invests in turnarounds and special situations. EQT said this investment was a special situation investment, where support was necessary for the business, “from a dedicated owner to achieve an ambitious growth strategy and reach its full potential.”
Valeo said it was looking to divest the business last month as a non-core asset.
This is the second deal this month by the opportunity fund after it acquired a majority stake in Strauss Innovation through an undisclosed capital increase. The German clothing chain had revenues of approximately €250 million in 2007. The business’ previous owner, the Geringhoff family, continues to hold a significant stake in Strauss Innovation.