.

        IMA

Faurecia to divest auto exteriors business to Plastic Omnium

France-headquartered Faurecia, one of the largest automotive parts suppliers, has signed a MOU for the sale of its Automotive Exteriors business worldwide to Compagnie Plastic Omnium. The business that would be sold, which is comprised of bumpers and front end modules, had sales of EUR2 billion in 2014 and employs 7,700 people in 22 sites. The composite business, the Faurecia 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 EUR665 million.

The finalisation of the project, associating the expertise and technology of two strong players, would create a global leader for exterior automotive parts, headquartered in France. Faurecia believes that this project will be beneficial for the development of the business and is in the best interests of its customers and employees.

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.

Prior to the signature of a definitive agreement, this deal is subject to information and consultation procedures with the relevant employee representative bodies and filing with the relevant antitrust authorities.

The transaction is expected to close during 2016.

(IMA)


Copyright (c) 2015 www.injectionmouldingasia.com. All rights reserved.