Nanterre, France – Faurecia has agreed to buy out the remaining 50 percent of a car interiors joint venture with German tire maker Continental.
Nanterre, France – Faurecia has agreed to buy out the remaining 50 percent of a car interiors joint venture with German tire maker Continental.
According to a memorandum of understanding, Faurecia will pay 225 million euros ($248 million) for the business, SAS, which handles assembly and logistics for automotive interiors.
The joint venture is expected to have sales of 700 million euros ($771 million) in 2019. Booked orders imply this number could rise to 1 billion euros ($1.1 billion) 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, according to a release. These would be made by rationalizing production sites, purchasing, logistics and engineering.
"SAS has shown strong growth potential and represents an excellent opportunity," said Faurecia CEO Patrick Koller.
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