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The Independent Automotive Aftermarket Federation

HELLA and Faurecia agree to combine their businesses: partnership opens additional growth potential

Date: Thursday 19 August 2021

The lighting and electronics specialist HELLA and French automotive supplier Faurecia have signed an agreement on the combination of the two companies. As part of the transaction, Faurecia will acquire the 60 percent 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 per share (gross offer price of € 60.96 including the expected dividend of € 0.96 per HELLA 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% 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 are already 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.

“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,” said HELLA CEO Dr. Rolf Breidenbach. “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.”

"As family shareholders, we are fulfilling our corporate and entrepreneurial responsibility for Hella by turning the company 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," said Dr Jürgen Behrend, Chairman of the family pool. "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."

“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. “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 the 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 acquisition will create sustainable value for Faurecia’s and HELLA’s customers, employees and shareholders.”