Faurecia to Divest its Automotive Exteriors Business
Faurecia, Nanterre, France, has signed a Memorandum of Understanding for the sale of its Automotive Exteriors business worldwide to Compagnie Plastic Omnium, Levallois-Perret, France.
The business that would be sold, which is comprised of bumpers and front end modules, had sales of EUR 2 billion in 2014 and employs 7,700 people in 22 sites in Germany, France, Spain, Slovakia, North and South America. Half of the sales come from Germany where Plastic Omnium has no production site for this activity. Faurecia's composite business, the plant for Smart in Hambach, France, and two joint ventures in Brazil and China are not included in the deal. The transaction is based on an Enterprise Value of EUR 665 million.
The finalization of the project, associating the expertise and technology of two strong players, would create a global leader for exterior automotive parts, headquartered in France. The divestiture, combined with the early redemption by Faurecia of its convertible bond (announced on December 7, 2015), would almost completely eliminate Faurecia’s net debt. The Group will thus be able to accelerate investment in strong value-added technologies for its Emissions Control Technologies, Automotive Seating and Interior Systems businesses.
The acquisition will give a new dimension to Plastic Omnium and enable it to better serve its customers around the world. By its size, it significantly strengthens the portfolio and the technological potential of Plastic Omnium to meet environmental challenges for light-weighting and for the reduction of emissions from motor vehicles.
The transaction must be submitted to the competition authorities concerned as well as the legal requirements regarding employee representatives in the countries concerned. The transaction should be finalized in 2016.
Compagnie Plastic Omnium
Faurecia Automotive GmbH
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