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Faurecia And Hella To Combine

Faurecia to launch a public tender cash offer on Hella and acquire its 60% stake from the Family pool.

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Faurecia, one of the world’s leading automotive technology companies, announced it has reached an agreement with the Family pool and with Hella to launch a public tender cash offer for all Hella shares at a price of €60 ($70 USD) per share. 

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Total consideration price of €60.96 ($71.41 USD) corresponds to a premium of 33% vs. the latest unaffected share price of €45.8 ($53.65 USD) and of 24% vs. the unaffected 3-month VWAP (volume weighted average price) of €49.1 ($57.52 USD).

As a result of the merger, the Family pool will join Faurecia’s shareholders with up to 9% share of capital, subject to an 18-month lock-up. A Family representative will join Faurecia’s board of directors, underlining the Family’s strong commitment to the combined company.

The transaction represents an estimated total enterprise value of €6.7b ($7.8b) for 100% of Hella. It has been unanimously approved by Faurecia’s board of directors and received the support of Hella’s management.

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The combined Group will focus on four growth areas, fully aligned with the following automotive megatrends:

  • Electric Mobility (incl. hydrogen solutions),
  • ADAS & Autonomous Driving,
  • Cockpit of the Future, and
  • Lifecycle Value Management. 

The combined company will become a major player in the electronics and software fields with sales of €3.7b ($4.3b USD) and 3,000 software engineers. It will be the seventh largest global automotive supplier (in the top 5 in Europe and in the top 10 in Americas and Asia), with a significantly enhanced profile in terms of businesses and customer reach.

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Patrick Koller, CEO of Faurecia, stated, “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. Our two talented teams have been cooperating very efficiently since end 2018, they have demonstrated their combined capabilities.

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. Our financial profile will remain solid, with strong attention paid to sustained cash generation and deleveraging the company. I am confident that this combination will create sustainable value for Faurecia’s and Hella’s customers, employees and shareholders.”

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Dr. Jürgen Behrend, chairman of the Family pool, stated, “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. This move will further improve the strategic positioning of the company – for the benefit of Hella and its 36,000 employees. At the same time, the family will continue to accompany the development of this leading European company as a shareholder in Faurecia, With Faurecia as the new majority shareholder, Hella will be able to play to its strengths even more effectively. The competences of both companies complement each other perfectly. We have secured long-term commitments for HELLA’S locations and its investments in future business areas. Hella, thus, has the ideal prerequisites to continue to be successful in the long term.”

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Dr. Rolf Breidenbach, CEO of Hella, added, “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.”

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