The automotive supplier Faurecia announced on Friday a capital increase of 705 million euros, following the acquisition of the auto parts manufacturer Hella with which it now forms the Forvia group.
From June 9 to 17, Faurecia will put 3 new shares for sale for 10 existing shares, at a unit price of 15.50 euros per new share, with preferential subscription rights maintained.
“
The proceeds from the capital increase will be used by Faurecia to partially refinance the acquisition of Hella by making it possible to repay part of the bridge loan put in place
,” said the French equipment manufacturer in a press release.
Read alsoFaurecia bets on technology with Hella
By marrying at the end of January under the name of Forvia with the German family group Hella, Faurecia has changed scale: this acquisition of 5.4 billion euros makes the new group the 7th largest automotive technology supplier in the world.
By combining "
two profitable and highly complementary companies in terms of technologies, customer portfolio and geographic coverage
", this acquisition is an opportunity for the two equipment manufacturers "
to reach a critical size
", states the press release, while realizing "
more than 250 million euros of cost optimization by 2025
”.
The capital increase "
constitutes a unique opportunity to participate in this strategic transformation
", boasted the general manager of Faurecia Patrick Koller, affirming that it was "
supported by (its) main shareholders
".
The Hueck et Roepke, Ecor, Peugeot and Bpifrance family pool have in fact "
undertaken to exercise all of their preferential subscription rights
", specifies Faurecia, "
corresponding overall to the subscription of 19.26% of the increase in capital
”.
With its 150,000 employees, Forvia is aiming for between 23 and 24 billion euros in sales for 2022, against around 22 billion euros in their (staggered) fiscal years for 2021, according to objectives confirmed on Friday.
By 2025, the group hopes to exceed 33 billion euros in sales and aims for an operating margin of more than 8.5%, against 5.5% expected for Faurecia for 2021.
The new entity intends to accelerate its growth in Asia, offer an "
improved offer in electronics and electrification
" as well as reduce "
to about 10% of its sales
" its exposure to the internal combustion engine.