Syntegra et al. exit AML to Johnsons Electric for €65m

José Rojo
09 February 2016

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Syntegra Capital and Picardie Investissement have sold French headlight leveller manufacturer AML Systems to listed trade buyer Johnsons Electric in a £65m deal.

Syntegra and Picardie's exit comes six years after the GPs carved out AML Systems from parent Valeo. Pending regulatory approval, the transaction is expected to complete in Q2 2016.

The trade sale will see Johnson Electric fully acquired AML, financing its purchase through existing cash reserves and debt from its revolving credit facilities.

As part of the agreement, AML's existing €7.5m debt facilities will be repaid from its own cash reserves, which most recently stood at €10.6m.

Hong Kong-listed automotive components supplier Johnson Electric was keen on AML's expertise in the headlight actuation segment.

Previous funding
Once completed, the trade sale will mark a full exit for French GPs Syntegra Capital and Picardie Investissement, as well as a number of managers at AML.

In February 2010, the group acquired the business by carving it out from its parent Valeo Group, a French listed automotive giant where BPI France is a minority shareholder.

The spinout saw Syntegra acquire a majority stake in AML via its 2004-vintage third buyout fund, which closed on its €245m target in May 2005. The GP's investment was not disclosed at the time but the firm typically deploys €15-30m per deal.

Company
Founded in 1960 as Seima, AML became Valeo Électronique in 1988 and rebranded to AML in 2000.

The company supplies headlight levellers, smart actuators and headlight cleaning systems to automotive clients. Headquartered in Le Bourget, near Paris, the business employs a combined 500 staff across a production site in France and an additional one in China.

During the year to 30 June 2015 the company generated €99.6m in turnover and €9.2m in EBITDA, up from a respective €90.5m and €8.7m the year before.

People
Syntegra – Patrick Bergot, Philippe Sevin (partners).
Johnson Electric – Patrick Wang (CEO, chair).

Advisers
Acquirer – Freshfields Bruckhaus Deringer (Legal).