PARIS -- Plastic Omnium has agreed to buy the European and North American lighting units of Varroc Engineering, a Tier 1 Indian supplier, for 600 million euros ($634 million).
The French supplier said Friday that it will create a new lighting business unit with expected revenue of 1 billion euros, including sales from Osram Automotive Lighting Systems, which it bought last year for 65 million euros.
Plastic Omnium had also sought to acquire the German lighting supplier Hella, its partner on front-end modules, but lost out to French rival Faurecia.
Varroc Engineering, based in Aurangabad, India, will retain its four-wheeler lighting operations in Asia and said it will continue to operate its China joint venture and its other businesses in countries such as Italy, Vietnam, Poland and Romania.
Varroc’s lighting activities operate as Varroc Lighting Systems, and are based in Plymouth, Michigan. The company's roots date to the 19th century, and it was part of Ford's Visteon unit until Varroc acquired it in 2012.
The divestment is part of Varroc Engineering's strategy to focus on the two-wheeler sector globally and electric vehicle product lines, according to the company.
The all-cash transaction is expected to close in the second half of this year.