Paris, 6 December, 2011 – 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 this move, Valeo becomes the first automotive supplier to offer its customers a range of electric superchargers. Unlike exhaust-driven turbochargers, electric superchargers are driven by an electric motor. This innovative technology, which leverages a switched reluctance motor with very low inertia, responds much faster than a conventional turbocharger.
Highly efficient at low engine revolutions, electric superchargers make it possible to reduce engine size—an important factor in reducing fuel consumption. Lastly, when coupled with a Valeo energy recovery system, electric superchargers can be used to create a cost-competitive hybrid solution that can deliver fuel savings of up to 20% in the standard European driving cycle.
“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).
Valeo is an independent industrial Group fully focused on the design, production and sale of components, integrated systems and modules for the automotive industry, mainly for CO2 emissions reduction. Valeo ranks among the world’s top automotive suppliers. The Group has 125 plants, 21 research centres, 40 development centres, 10 distribution platforms and employs 67,900 people in 28 countries worldwide.
Controlled Power Technologies is an independent developer and supplier of cost-effective automotive technologies designed to improve automotive fuel consumption and emissions, without the need for redesign of the powertrain or vehicle electrical system.