Automotive Supplier Faurecia Acquired 60% Stake In Hella

The lighting and electronics specialist HELLA and French automotive supplier Faurecia signed an agreement on the combination of the two companies. As part of the transaction, Faurecia will acquire the 60 per cent stake held by HELLA pool shareholders. In addition, Faurecia has announced a voluntary public tender offer to acquire the remaining HELLA shares at an offer price of 60 Euros per share. The closing of the transaction is subject to regulatory approvals and is expected in early 2022. The pool shareholders of HELLA will retain an up to 9 per cent stake in the listed parent company via a reverse shareholding and therefore will continue to closely accompany HELLA in the future. A pool representative is also to join Faurecia's Board of Directors.

By combining their activities, HELLA and Faurecia will become the 7th largest global automotive supplier. This opens up significant potential for further profitable growth. HELLA and Faurecia today already are global market leaders in their respective fields. By combining their respective strengths, HELLA and Faurecia aim to further expand their market position, particularly in key growth areas such as Electric Mobility, Automated Driving and Vehicle Interior Design, and to further strengthen their position across customers and regions.

As part of the transaction, Faurecia will acquire the 60 per cent stake held by HELLA pool shareholders.

HELLA CEO Dr. Rolf Breidenbach said, "Faurecia and HELLA are a very good fit. This especially applies to product range and market coverage. In addition, both partners place a high value on consequent customer orientation, operative excellence and technology leadership. Therefore, 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."

The combination of HELLA and Faurecia will create a global technology leader covering both a broad customer portfolio and significant future trends in the automotive sector. Faurecia's good access to key Chinese, Japanese and US original equipment manufacturers will create new growth potential for the business areas of HELLA. Further opportunities arise primarily in the areas of Electric Mobility, Automated Driving, Cockpit of the Future, and Lifecycle Value Management (including Aftermarket and Special Applications). Throughout these the two companies have complementary business activities which together offer a high-performance portfolio with broad market access.

The transaction will for example create a global supplier for Electric Mobility with a comprehensive range of services. HELLA will contribute its strong portfolio in energy management, sensors and actuators, while Faurecia will provide sophisticated hydrogen storage solutions and stacks systems. In Automated Driving, the combination will also create a global technology leader with a broad range of products and systems. To this end, Faurecia is contributing the expertise of its subsidiary Faurecia Clarion Electronics, among others.

Based on the close development partnership between the two companies regarding innovative lighting solutions for vehicle interiors, which has been in place since 2018, these activities will be further accelerated by incorporating Faurecia's competencies in Seating and Interiors as well as the HELLA expertise in Interior Lighting, sensors and electronics for vehicle access systems. Further benefits will arise from combining the HELLA aftermarket activities and business with specialty vehicle manufacturers with Faurecia's Lifecycle Value Management activities.