Faurecia Buys Hella Stake, Bids for Rest in $8 Billion Deal

Yueqi Yang
·1 min read

(Bloomberg) -- Faurecia SE agreed to buy a majority stake in German automotive supplier Hella GmbH & Co. and offered to acquire the rest in an $8 billion deal, beating out rival bidders from the European car-parts industry.

Nanterre, France-based Faurecia will buy a 60% stake from the founding Hueck family, according to a statement by Hella on Saturday. Faurecia will make a public offer for the remainder at 60 euros a share plus a dividend of 0.96 euro apiece, valuing Hella at about 6.8 billion euros.

Hella closed on Friday at 63.18 euros per share.

The deal, one of the biggest in the European auto parts industry in the past three years, would create a company with annual sales of more than $24 billion and over 141,000 employees.

Faurecia, which focuses much of its business on developing what it calls the “cockpit of the future,” is taking over a company that makes lighting and electronic components, as well as radar sensors for driver-assistance systems.

Faurecia beat out competition from German car-parts maker Mahle GmbH and French rival Cie Plastic Omnium SA, Bloomberg News reported earlier. Last month, Knorr-Bremse AG abruptly called off its pursuit after investors reacted negatively to the plans.

Lippstadt-based Hella traces its roots back to 1899. In February, it completed the sale of its front camera software business to Volkswagen Group as part of what it called “stringent portfolio management,” while reaffirming its commitment to automated driving.

The closing of the transaction is expected at the beginning of 2022.

(Adds detail from fourth paragraph)

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