French automotive supplier Faurecia has reached an agreement to buy German automotive supplier Hella for €6.7bn.
A public tender cash offer for all Hella shares at €60.96 per share is expected to be resolved by the Hella annual general meeting on September 30, 2021. This is a premium of 33 percent on the current share price.
Hella had a 2020 turnover of €6.3bn, giving the combined group a turnover of €23.8bn. The combined Group will focus on four growth areas in Hella that have sales of €3.7bn and around 3,000 software engineers across 24 production sites and 21 R&D centres.
This will see Faurecia as the fifth largest European supplier and in the top ten in America and Asia with a focus on electric mobility, including hydrogen solutions, ADAS & Autonomous Driving, the Cockpit of the Future and Lifecycle Value Management. The company is aiming to nearly double turnover of the Hella business units to €7bn by 2025 even in the face of the decline of the traditional ICE car market.
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The majority of Hella shares are held by a Family pool which will join Faurecia’s shareholders with up to 9 percent share of capital, subject to an 18-month lock-up. A Family representative will join Faurecia’s Board of Directors. The deal has been unanimously approved by Faurecia’s Board of Directors and received the support of Hella’s management.
"As family shareholders, we are fulfilling our corporate and entrepreneurial responsibility for Hella by turning the company Hella over to new owners early on, before our family pool agreement expires,” said Dr Jürgen Behrend, Chairman of the Family pool.
“This move will further improve the strategic positioning of the company – for the benefit of Hella and