PARIS -- French car parts maker Valeo said on Monday it had bought Johnson Controls' engine electronics division for an enterprise value of 330 million euros ($436.7 million).
The division designs, produces and sells engine management systems and engine components, and made sales of 426 million euros in its September 2004 fiscal year.
Valeo said the transaction, which is subject to regulatory approvals from Brussels, should be completed in February.
Chairman and CEO Thierry Morin told a conference call that 324 million euros of the total had been funded through its cash resources, and that the division would have a positive impact on Valeo's performance in its first year.
Morin said the acquisition would reinforce Valeo's electronics expertise.
"This is an important step in our technology strategy and will drive strong growth," Morin said.
The division is based north of Paris and has two plants in France, with a total workforce of about 2,000 people.