- The acquisition will form seventh largest automotive supplier globally
- The combined Group will focus on four growth areas, fully aligned with automotive megatrends of Electric Mobility (incl. hydrogen solutions),ADAS & Autonomous Driving, Cockpit of the Future, Lifecycle Value Management
Faurecia has announced that it has reached an agreement with the Family pool and with Hella to launch a public tender cash offer for all Hella shares at a price of €60 per share; total consideration of €60.96 (incl. the dividend of €0.96 expected to be resolved by the Hella annual general meeting on 30th September, 2021 and to be paid by Hella to all its shareholders pre-closing) corresponds to a premium of 33 per cent vs. the latest unaffected1 share price of €45.8 and of 24 per cent vs. the unaffected 3-month VWAP (volume weighted average price) of €49.1.
The agreement also consists of acquiring from the Family pool its 60 per cent stake at a price of €60 per share, paid through a mix of €3.4bn of cash and up to 13,571,428 newly issued Faurecia shares (based on a reference price of €42.063 for one Faurecia share).
As a result, the Family pool will join Faurecia’s shareholders with up to nine per cent share of capital, subject to an 18-month lock-up. A Family representative will join Faurecia’s Board of Directors, underlining the Family’s strong commitment to the combined company. The transaction represents an estimated total enterprise value of €6.7bn for 100 per cent of Hella. It has been unanimously approved by Faurecia’s Board of Directors and received the support of Hella’s management.
The combined Group will focus on four growth areas, fully aligned with automotive megatrends of Electric Mobility (incl. hydrogen solutions),ADAS & Autonomous Driving, Cockpit of the Future, Lifecycle Value Management.
Patrick Koller, CEO of Faurecia, added “This combination is a unique opportunity to create a global leader in automotive technologies. I am convinced that Faurecia and Hella have an outstanding fit as we share common vision, values and culture. Our two talented teams have been cooperating very 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.
He added, “By combining our 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 that this combination will create sustainable value for Faurecia’s and Hella’s customers, employees and shareholders.”
