Faurecia to buy Hella

By: Miguel A. Rodriguez

14:11, 16 August 2021

A new deal, a new global player in the automotive industry

The France-based automotive equipment supplier – Faurecia – agreed to purchase a majority stake in German automotive lighting group Hella, creating the world’s seventh-largest player in the industry.

Hella – a pool of family-related shareholders company – announced in a statement that 60% of their stake would go to Faurecia for €60 per share, and it will offer the same price for the outstanding stocks. According to Faurecia, the transaction represents an estimated total enterprise value of €6.7 billion ($7.90 billion) for 100% of Hella. The deal is expected to close in early 2022 and is one of the most significant European auto parts industry in three years.

The shareholders will receive €3.4 billion in cash and nearly €600 million in Faurecia shares when valued at a three-month average of €42.06 apiece. According to the shareholders, Hella reached a size that required external competence beyond the founding family.

Patrick Koller, Faurecia CEO, stated: “This combination is a unique opportunity to create a global leader in automotive technologies.” The company made long-term commitments regarding strategy, financing and corporate governance, and employees’ interests. Also, Hella’s headquarters in Lippstadt will remain a major corporate center.

At the moment of writing, Faurecia stock price was up 7%.


Sources: Bloomberg.com, reuters.com

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This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided.