Varroc Engineering, an auto components manufacturer, on Friday announced the sale of its four-wheeler lighting systems operations in the Americas and Europe for $631 million (€600 million).

Under the agreement signed with Plastic Omnium of France, Varroc will sell its operations in the US, Brazil, Mexico, Poland, Czech Republic, Germany, Turkey and Morocco.

Varroc will retain its lighting operations in Asia and continue to operate its joint venture in China, other international two-wheeler businesses in Italy and Vietnam, and global electronics businesses in Poland and Romania.

Varroc’s lighting systems and other businesses in India — design, manufacture and supply of polymer, electrical-electronics and metallic components — will also continue.

The divestment is part of Varroc’s strategy to align its resources with the high-value and high-growth primary markets in China, India and the two-wheeler sector globally. Varroc plans to focus on electronics, connectivity, electric vehicle lines and two-wheeler segments globally.

Tarang Jain, chairman and MD, Varroc Engineering, said the immediate goal was to be future-ready with continued profitable growth in emerging sectors like the EV and high technology electronics. “The divestment of our passenger car lighting operations in the Americas and Europe will be a win-win deal for Varroc and Plastic Omnium. For us, we unlock great value for all our shareholders, employees, and business partners as we plan for our next level of growth in the fastest-growing economies and auto sectors in the world,” Jain said.

Varroc said it would be investing in operations and R&D to enhance its shareholders’ value by creating a robust and financially strong operation, ensuring higher return on investments.

Laurent Favre, CEO, Plastic Omnium, said Varroc Lighting Systems provided them an extensive lighting product portfolio, a balanced footprint across best-cost countries and cross-selling opportunities.

Varroc’s stock price reached a 52-week high of Rs 494.60 on Friday on the BSE during the day’s trade. Rothschild & Co acted as the exclusive financial adviser to Varroc Engineering on the transaction.