Faurecia, one of the world’s leading automotive technology companies, recently reached an agreement with Hella to launch a public tender cash offer for all Hella shares at a price of €60 per share. The transaction represents an estimated total enterprise value of €6.7 billion (US$7.9 billion) for 100% of Hella. It has been unanimously approved by Faurecia’s Board of Directors and received the support of Hella’s management.

The combined Group will focus on four growth areas, fully aligned with automotive megatrends:

• Electric Mobility (including hydrogen solutions)

• ADAS & Autonomous Driving

• Cockpit of the Future

• Lifecycle Value Management

The combined company will become a major player in the electronics and software fields with sales of €3.7 billion (US$4.4 billion) and around 3,000 software engineers. It will be the 7^thlargest global automotive supplier (in the top-5 in Europe and in the top-10 in Americas and Asia), with a significantly enhanced profile in terms of businesses and customer reach.

The combined Group will develop a comprehensive offer for electric vehicles (HEVs, PHEVs, BEVs and FCEVs), building on Hella’s energy management portfolio, sensors and actuators related to BEVs, as well as Faurecia’s hydrogen system solutions (FCEV) and hybrid systems.

Battery management systems, DCDC converters, onboard charging systems brought by Hella as well as battery pack systems, hydrogen storage systems and stack systems brought by Faurecia are examples of the combined product offer. With its portfolio of solutions, the Group will be positioned to benefit from the zero emissions mobility market transition.

The Group’s ICE sales exposure will decrease from 25% in 2020 to less than 20% at closing and down to around 10% in 2025.

In ADAS & Autonomous Driving, the combination of Faurecia Clarion Electronics with Hella Electronics and Software will create a strong global player supporting the next high-speed and low-speed ADAS convergence. Radars, Electric Power Steering (including fail operational), e-mirrors, 360° views & automated parking solutions are a few examples of the combined product and system offer.

With combined sales of €3.7 billion in Electronics and Software, the new Group will operate 24 production sites and 21 R&D centers. The ambition, with orders already significantly booked, is to grow sales to around €7 billion (US$8.2 billion) in 2025.