Faurecia is to acquire the 60% stake held by Hella pool shareholders, as well as launch a voluntary public tender offer to buy the remaining shares at an offer price of EUR60 per share.
The closing of the transaction is subject to regulatory approvals and is expected in early 2022.
The pool shareholders of Hella will retain an up to 9% stake in the listed parent company via a reverse shareholding. A pool representative is also to join Faurecia’s board.
Through the combination, Hella and Faurecia will become the seventh largest global automotive supplier.
“Faurecia and Hella are a very good fit,” said Hella CEO, Rolf Breidenbach. “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 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.”
For his part, Hella chairman of the family pool, Jürgen Behrend, added: “As family shareholders, we are fulfilling our corporate and entrepreneurial responsibility for Hella by turning the company 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.
“We have secured long-term commitments for Hella’s locations and its investments in future business areas.”
Hella noted Faurecia’s access to Chinese, Japanese and US OEMs will create new growth potential. Further opportunities arise primarily in the areas of Electric Mobility, Automated Driving, Cockpit of the Future and Lifecycle Value Management (including Aftermarket and Special Applications).
Hella will contribute its portfolio in energy management, sensors and actuators, while Faurecia will provide hydrogen storage solutions and stacks systems.
“This combination is a unique opportunity to create a global leader in automotive technologies,” said Faurecia CEO, Patrick Koller. “I am convinced Faurecia and Hella have an outstanding fit as we share common vision, values and culture.”
“Our two teams have been cooperating efficiently since end 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.
“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 this acquisition will create sustainable value for Faurecia’s and Hella’s customers, employees and shareholders.”