The deal will enable Faurecia to create a top 10 global automotive supplier with a highly advanced technology portfolio to address all the megatrends in the industry
Hella headquarters in Lippstadt, Germany. (Credit: HELLA GmbH & Co. KGaA)
Faurecia, a French automotive technology company, has agreed to acquire Germany-based automotive lighting and electronics specialist Hella in a deal worth €6.7bn.
In this connection, Faurecia has reached an agreement to acquire 60% stake in the German firm from a pool of family-related shareholders at a price of €60 per share. The consideration will be made up of €3.4bn in cash and up to 13.57 million of newly issued Faurecia shares.
The family pool will hold a stake of 9% in the combined company.
For the remaining 40% stake in Hella, the French firm will launch a public tender at a price of €60 in cash per share.
Hella family pool chairman Jürgen Behrend said: “As family shareholders, we are fulfilling our corporate and entrepreneurial responsibility for Hella by turning the company HELLA over to new owners early on, before our family pool agreement expires.
“This move will further improve the strategic positioning of the company – for the benefit of HELLA and its 36,000 employees.
“At the same time, the family will continue to accompany the development of this leading European company as a shareholder in Faurecia.”
According to Faurecia, the deal will enable it to establish a top 10 global automotive supplier, which will have a highly advanced technology portfolio for addressing all industry megatrends.
The combined firm will also find a place among the top players in the electronics and software fields with €3.7bn from sales and around 3,000 software engineers.
Through the combination of their respective strengths, Faurecia and Hella plan to further grow their market position, especially in important growth areas like electric mobility, vehicle interior design, automated driving, and cockpit of the future.
Faurecia CEO Patrick Koller said: “Together, we will have the critical edge to benefit from the strategic drivers that are transforming the automotive industry. 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.
“Our financial profile will remain solid, with strong attention paid to sustained cash generation and deleveraging the company.”
The deal, which is subject to relevant regulatory authorities among others, is anticipated to close early 2022.