French car parts suppliers Faurecia on Saturday agreed to acquire a majority stake in German automotive lighting group Hella, trumping rival bidders and creating the world’s seventh-largest player in a 6.7 billion euros deal.
Faurecia struck the deal with a pool of family-related shareholders over their 60% stake for 60 euros ($70.75) per share and will offer the same price for the outstanding stock, Hella said in a statement on Saturday.
Faurecia said in statement the transaction represented an estimated total enterprise value of 6.7 billion euros ($7.90 billion)for 100% of Hella.
People familiar with the matter previously said that Cie Plastic Omnium and Germany’s Mahle GmbH had submitted bids at around 60 euros per share, valuing the target at roughly 7 billion euros.
The deal, expected to close early 2022, is one of the biggest in the European auto parts industry in the past three years.
According to the statement, the combined group will have pro forma sales of 23 billion euros in 2021 and wants to reach 33 billion by 2025.
Revenue synergies are expected between 300 million to 400 million euros of sales by 2025, and cash-flow optimizations are expected around 200 million euros per year on average from 2022 to 2025.
