The French car parts supplier Faurecia is set to acquire a majority stake in German automotive lighting group Hella, to further strengthen its position in the fast-growing automotive technologies market.
Photo: Hella
Photo: Hella
The lighting and electronics specialist Hella and French automotive supplier Faurecia signed an agreement on the combination of the two companies. As part of the transaction, Faurecia will acquire the 60% stake held by Hella pool shareholders.
In addition, Faurecia has announced a voluntary public tender offer to acquire the remaining Hella shares at an offer price of €60 per share. The closing of the transaction is subject to regulatory approval and is expected in early 2022.
Hella and Faurecia will become the world's seventh-largest global automotive supplier, opening up significant potential for further growth.
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By combining, the companies say they will further expand their market position, particularly in key areas such as eMobility, automated driving and vehicle interior design, and to further strengthen their position across customers and regions.
“Faurecia and Hella are a very good fit. This especially applies to the product range and market coverage. In addition, both partners place a high value on consequent customer orientation, operative excellence and technology leadership,” said Hella CEO Dr Rolf Breidenbach.
“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.”
Patrick Koller, CEO of Faurecia, added: “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 of 2018, they have demonstrated their combined capabilities. Together, we will have the critical edge to benefit from the strategic drivers that are transforming the automotive industry."
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"By combining the product portfolios and market reach, we will accelerate profitable growth, through innovation, with more electronic and software content and enhanced execution quality. Our financial profile will remain solid, with strong attention paid to sustained cash generation and deleveraging the company. I am confident that this acquisition will create sustainable value for Faurecia’s and Hella’s customers, employees and shareholders."
The companies say the merger will create "a global technology leader covering both a broad customer portfolio and significant future trends in the automotive sector" and Faurecia’s existing access to key Chinese, Japanese and US original equipment manufacturers will create new growth potential for the business areas of Hella.
Further opportunities arise primarily in the areas of electric mobility, automated driving, the cockpit of the future, and lifecycle value management (including aftermarket and special applications). Throughout these, the two companies have complementary business activities which together offer a high-performance portfolio with broad market access.
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