Faurecia is to acquire the remaining 50% of its SAS joint venture and to expand integration to cover all interior modules.
The joint venture was established in 1996 and has become a player in complex interior module assembly and logistics.
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The company employs 4,490 people in 19 facilities in Europe, North America and South America. Sales are expected to show growth in 2019 and should reach around EUR700m (US$772m).
The project would expand Faurecia’s systems integration offer to cover all interior modules as well as its new product lines such as displays, electronics, sensors and thermal management.
The addition of SAS core competences in systems integration and complexity management would also strengthen Faurecia’s just in time plant network.
Faurecia says the project would be immediately accretive in operating margin, net income and return on capital employed. Financial performance would be consolidated into the Interiors Business Group.
Synergies could be obtained in manufacturing engineering, logistics and footprint optimisation as well as in purchasing and SG&A (Selling, General and Administrative).
With an order book showing growth potential, sales should exceed EUR1bn by 2024 (representing a CAGR of around 9%). Growth would be accelerated through regional and customer diversification particularly in China.
