Plastic Omnium says it has received a EUR200m (US$209m) binding offer from Flex Gate Group to acquire seven sites in France, Germany and Spain as part of the European Commission’s (EC) ruling following the French supplier’s purchase of Faurecia’s Auto Exterior business.
On the basis of the offer, Plastic Omnium will enter into exclusive discussions with Flex Gate.
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In July this year, Plastic Omnium was authorised to acquire Faurecia’s Exterior Systems business subject to the disposal of certain assets.
These assets represent around EUR700m in revenue, split evenly between the French and Spanish sites for the bumper business and the front-end module assembly operation in Germany.
Flex Gate employs more than 18,000 people at 55 manufacturing facilities, as well as nine product development and engineering facilities in Canada, the US, Mexico, Argentina, China, Japan, Brazil and Spain.
Flex Gate’s major product lines include complete bumper assemblies, mechanical assemblies, exterior plastic trim, aluminium and steel modular stamped body-in-white and chassis assemblies and complex welded structural assemblies for the light vehicle market.
Flex Gate is the number two in North America for the production of bumpers.
The proposed transaction must undergo the procedures relating to unions in the countries concerned and then obtain authorisations from the EC and competent competition authorities.
The transaction should be finalised during 2017.
