Nanterre, France - Faurecia, a French auto parts supplier, has signed an agreement to acquire Troy, Michigan-based EMCON - an integrator of emission control technologies for passenger and commercial vehicles - which will now join the company's Exhaust Systems business to form a new unit: Faurecia Emissions Control Technologies. Faurecia, which already has automotive seating, interiors and exterior systems businesses, is expecting the new unit to generate sales of Euro 5200 million ($7685 million).
The acquisition of 100 percent of EMCON's shares will be paid exclusively by the issue of 20.9 million new Faurecia shares, "with no cash impact and no significant impact on the group's debt," a 2 Nov Faurecia statement said. This, Faurecia said, will generate annual synergies of around Euro 60 million. The company is aiming for the deal to be accretive from 2011, the statement added.
"I am pleased to welcome EMCON technologies and its teams within Faurecia," said Yann Delabriére, ceo of Faurecia, adding that the deal is in line with company strategy introduced in Feb 2009. "It reinforces our position on the market for emissions control technologies, which will boast strong growth over the coming years. "Moreover, this deal will take place with no significant increase of Faurecia's debt," he added.
Formerly Arvin Industries, EMCON posted sales of Euro 2400 million in 2008, employing 6000 people in 19 countries. (RD)