Faurecia is raising capital

The French equipment manufacturer has just launched a capital increase. The € 705 million expected by Faurecia will be used to pay for part of Hella’s takeover.

Faurecia will finance part of the acquisition of Hella through this capital increase.

Automotive equipment maker Faurecia announced a capital increase of 705 million euros on Friday, June 3, 2022, following the acquisition of Hella, with which it now forms the Forvia Group. From June 9 to 17, Faurecia will sell 3 new shares for 10 existing shares, at a unit price of 15.50 euros per new share, with the maintenance of the preferential subscription right.

The proceeds of the capital increase will be used by Faurecia to partially refinance the acquisition of Hella by repaying part of the relay credit set up.“The French equipment maker said in a statement.

By marrying Forvia to the German family group Hella at the end of January, Faurecia has changed its scale: this € 5.4 billion acquisition makes the new group the world’s 7th largest automotive supplier.

Also read : Forvia well targeted in the first quarter of 2022

By combining “two profitable and highly complementary companies in terms of technology, customer portfolio and geographic coverage“This acquisition is an opportunity for both OEMs”to reach a critical size“, says the statement, while realizing”more than € 250 million in cost optimization by 2025“.

The capital increase “is a unique opportunity to participate in this strategic transformation“said Faurecia’s CEO Patrick Kollerclaiming that she was “supported by (its) major shareholders“.

The Hueck and Roepke family pool, Ecor, Peugeot and Bpifrance have indeed “committed to exercise all their preferential subscription rights“says Faurecia,”corresponding to the overall subscription of 19.26% of the capital increase“.

With 150,000 employees, Forvia aims for sales of between 23 and 24 billion euros in 2022, compared to about 22 billion euros in their (offset) financial years for 2021, according to targets confirmed on Friday.

By 2025, the group expects to exceed € 33 billion in sales and aims for an operating margin of more than 8.5%, compared to 5.5% expected for Faurecia in 2021. The new entity plans to accelerate its growth in Asia , propose a “improved supply of electronics and electrification“as well as reduce”about 10% of its sales“Exposure to internal combustion engine AFP)

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