Nanterre, France – Faurecia has agreed to buy out the remaining 50% of its car interiors joint venture with tyre maker Continental.
Faurecia plans to buy Continental's half of SAS jv
Faurecia has agreed to buy out the remaining 50% of a car interiors joint venture with tyre maker Continental.
According to a memorandum of understanding, Faurecia will pay EUR 225m (excluding cash) for the business, SAS. The joint venture is expected to have sales of EUR 700m in 2019. Booked orders imply this number could rise to EUR 1bn by 2024. The deal should immediately boost Faurecia's net income, operating margin and return on capital employed.
SAS employs 4,490 people in 19 factories in Europe, North and South America.
The acquisition will enable Faurecia to offer all the internal modules of passenger cars. It will fit into the company's interiors business group, where cost savings should be possible. These would be made by rationalising production sites, purchasing, logistics and engineering.
Patrick Koller, Faurecia's CEO, said: 'SAS has shown strong growth potential and represents an excellent opportunity.'