French auto parts maker Valeo SA (FR.FR) said Wednesday it is boosting its Asian operations through the acquisition of Niles Co Ltd, a Japanese manufacturer of switches, for EUR320 million.

Valeo is acquiring a 77.8% interest from Belgian holding company RHJ International SA (RHJI) as well as a 20% minority shareholding held by Nissan Motor Co Ltd (7201.TO), Niles' main customer.

Valeo said the all-cash deal will complement its existing switch-making business and make it the world leader in this field, while strengthening its position with auto makers in Japan and throughout Asia.

More than 90% of Niles' sales come from Japanese auto makers. Niles also supplies Renault Samsung Motors in South Korea, General Motors Co (GM) and Ford Motor Co (F).

Niles has production facilities in Michigan and Kentucky in the U.S., as well as in Taiwan, China, Thailand and France.

The acquisition reflects Valeo's strategy of broadening its presence outside mature markets such as North America and Europe. It aims to expand its product line-up to meet the demands of auto makers, whose vehicles are increasingly electrified both as regards interior systems and drive trains. Niles also makes sensors.

David Pearson, Dow Jones Newswires; +331 4017 1740, david.pearson@dowjones.com
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