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