French automotive supplier Faurecia is to acquire lighting and electronics firm Hella, after an agreement on the combination of the two companies was signed.
Faurecia will acquire the 60 per cent stake held by Hella pool shareholders. The closing of the transaction is expected in early 2022.
According to a spokesperson for Hella, the combination will create the 7th largest global automotive supplier.
“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,” the spokesperson said.
“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).
“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 spokesperson said 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,” the spokesperson for Hella concluded.
According to its website, Faurecia provides innovative solutions to automotive challenges across five activities and four Business Groups: Faurecia Seating, Faurecia Interiors, Interior Modules and Faurecia Clarion Electronics and Faurecia Clean Mobility.
These activities develop technologies for future mobility and provide cost competitiveness and operational excellence across the value chain to achieve total customer satisfaction, it said.