The acquisition will form seventh largest automotive supplier globally, with a highly advanced technology portfolio addressing all industry megatrends.
New Delhi: French-based Faurecia, one of the world's leading automotive technology companies, announced it has recently reached an agreement to acquire a majority stake in German automotive lighting group Hella in a USD 8 billion deal.
Faurecia, which outbid rivals Plastic Omnium and Mahle, buys a 60% stake in German automotive supplier Hella. The combined group will focus on electric mobility, autonomous driving, and lifecycle value management.
Revenue synergies are expected between Euro 300m and Euro 400m of sales by 2025, and cash-flow optimizations are expected around Euro 200m per year on average from 2022 to 2025.
According to Patrick Koller, CEO of Faurecia, this combination is a unique opportunity to create a global leader in automotive technologies.
"I am convinced that Faurecia and Hella have an outstanding fit as we share common vision, values and culture. Our two talented teams have been cooperating very efficiently since the end 2018, they have demonstrated their combined capabilities. By combining our product portfolios and market reach, we will accelerate profitable growth, through innovation, with more electronic and software content and enhanced execution quality," he added.
The combined Group will develop a comprehensive offer for electric vehicles (HEVs, PHEVs, BEVs and FCEVs), building on Hella's energy management portfolio, sensors and actuators related to BEVs, as well as Faurecia's hydrogen system solutions(FCEV) and hybrid systems.
Battery management systems, DCDC converters, onboard charging systems brought by Hella as well as battery pack systems, hydrogen storage systems and stack systems brought by Faurecia are examples of the combined product offer. With combined sales of Euro 3.7bn in Electronics and Software, the new Group will operate 24 production sites and 21 R&D centers.
Rolf Breidenbach, CEO of Hella, declared: "Faurecia and HELLA are a very good fit. This especially applies to product range and market coverage. In addition, both partners place a high value on consequent customer orientation, operative excellence and technology leadership. Therefore, it is only logical that we join forces to drive the future of mobility together. With Faurecia at our side, we will have even more opportunities to do so than before."
The combination will bring together two companies with established and complementary positions. It will open new sales opportunities for Hella by leveraging Faurecia's privileged access to key Chinese and Japanese OEMs. It will increase Faurecia's intimacy with German Premium OEMs, thanks to Hella's strong position. Both will benefit from complementary intimacies with US based OEMs.
Five of the six Business Groups – Electronics, Lighting, Seating, Interiors, Clean Mobility – will each exceed Euro 3bn of sales. The newly created Business Group Lifecycle Value Management will contribute to grow this segment with a leading position.
The completion of the transaction (including the settlement of the public tender offer) and its calendar remain subject to approvals by the relevant regulatory authorities. Faurecia will launch an information procedure with the European Company Committee and other employee representative bodies.
The completion of the transaction does not require any approval by the shareholders of Faurecia; the issuance of new Faurecia shares for the exchange against Hella shares or as part of the rights issue being in the range of the authorizations granted by the Faurecia shareholders meeting on May 31, 2021.
The transaction is expected to close early 2022.