Faurecia To Acquire Majority Stake in HELLABy Alejandro Enríquez | Wed, 08/25/2021 - 13:19
Faurecia signed an agreement with HELLA to acquire the latter’s 60 percent stake held by its pool shareholders. Faurecia also announced a voluntary public tender offer to acquire the remaining HELLA shares. The transaction is subject to regulatory approvals and is expected to close in early 2022.
“Faurecia and HELLA are a very good fit. This especially applies to product range and market coverage. Therefore, it is only logical that we join forces to drive the future of mobility together," said HELLA CEO Rolf Breidenbach. "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," said Patrick Koller, CEO of Faurecia on a statement.
This is the first major operation taken by Faurecia after it was spun-off from Groupe PSA, which merged with FCA to create Stellantis earlier this year.
The combined group will focus on four verticals that are aligned with the sector's megatrends: Electric mobility, ADAS and autonomous driving, the cockpit of the future and lifecycle value management. Both companies have been cooperating in joint projects since 2018. "Together, we will have the critical edge to benefit from the strategic drivers that are transforming the automotive industry. 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," says Koller.
The operation will create the 7th largest automotive supplier in the world, according to both companies, with a strong focus on the fast-growing technologies of the sector. The new group will operate 24 production sites and 21 R&D centers. In Mexico alone, Faurecia has 14 plants for seating, interiors and clean mobility, plus two R&D centers and one shared service center. On its part, HELLA has seven manufacturing complexes in the country.
Out of the four focus areas, HELLA will contribute its energy management solutions portfolio, which includes sensors and actuators for Battery Electric Vehicles (BEVs). Hybrid Electric Vehicles (HEVs) and Plug-in Hybrid Electric Vehicles (PHEVs) are also on the table. Hydrogen powered vehicles are also included in this goal, as Faurecia will contribute with its Fuel-Cell Electric Vehicle (FCEVs) solutions. The company expects that sales from ICE vehicles will decrease from 25 percent in 2020 to around 10 percent in 2025.
Both companies will share their unique expertise in electronic components for ADAS and AVs. Faurecia Clarion Electronics and Hella Electronics and Software will be combined to accelerate ADAS. "It is only logical that we join forces to drive the future of mobility together. With Faurecia at our side, we will have even more opportunities to do so than before," says Breidenbach. Key priorities in this area include radars, electric power steering, e-mirrors, 360 views and automating parked solutions.
The cockpit of the future is part of Faurecia's strategy to take advantage of its leading position in seating and interiors and Hella's expertise in interior lighting. As for the lifecycle Value Management, environmental concerns will drive aftermarket, services, repairs and special applications.