The French car spare parts company Faurecia announced that its merger with Hella will lead to sales targets of over 33 billion Euros in 2025 and an operating profit margin of over 8.5%.
The company, which makes seats, electrical and other interior car parts, set these goals as it marked the completion of the previously announced acquisition of the German car parts supply company Hella.
The acquisition of Hella by Faurecia is a unique opportunity for two high-tech companies to accelerate their transformation, to achieve significant size and leadership in electronics and lifecycle solutions, Faurecia said.
The new name of the merged group, resulting from the acquisition of 6.7 billion euros, will be announced later today, Faurecia added.
The deal, announced in August when the family’s shareholder chose Faurecia from various stakeholders, marks the end of an era for the German car electronics and lighting company, which was founded in 1989 to make oil lamps for wagons.
Hella will continue to trade on the stock exchange with its own independent government, with Faurecia adding that Juergen Behrend, a representative of the Hueck family who previously controlled Hella, will be nominated to the board. of the directors of Faurecia.
The acquisition will lead to revenues between 300-400 million Euros by 2025, while the optimization of cash flows seems to yield around 200 million Euros per year on average as much as from 2022 to 2025.
Source: Capital
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