By Cecilia Butini
Faurecia SE has launched a tender offer to acquire all shares in Hella GmbH & Co. KGaA in a deal that values Hella at about 6.8 billion euros ($8.02 billion), the companies said.
SECRET SOFTWARE SHOWS WHEN TO
BUY OR SELL!
TRADE WITH CONFIDENCE
Faurecia’s offer is to acquire all Hella shares at a price of EUR60 apiece as part of a total consideration of EUR60.96 a share including an expected dividend, it said Saturday.
Additionally, the French automotive supplier will acquire the 60% stake retained by Hella’s family-related shareholders at a price of EUR60 a share, which will be paid through a mix of EUR3.4 billion in cash and newly issued Faurecia shares, the company said.
“As a result, the family pool will join Faurecia’s shareholders with up to 9% share of capital, subject to an 18-month lock-up,” Faurecia said.
The deal has an estimated enterprise value of EUR6.7 billion for 100% of Hella, Faurecia said.
The combined company is set to focus on four key areas, including electric mobility and autonomous driving, according to Faurecia, which also said the new entity is expected to generate sales of EUR33 billion, becoming the seventh-largest global automotive supplier.
Revenue synergies are expected between EUR300 million and EUR400 million of sales by 2025, the company said.
The deal is expected to close in early 2022, the two companies said.
Write to Cecilia Butini at email@example.com
Corrections & Amplifications
This article was corrected at 0829 GMT because the original incorrectly said the company is expected to generate sales of EUR3.7 billion. The combined entity resulting from Faurecia’s acquisition of Hella is expected to reach over EUR33 billion in sales in 2025.