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Faurecia to acquire remaining 50% of SAS Joint Venture to expand integration to cover all interior modules

Auto News - Published on Wed, 16 Oct 2019

Image Source: https://www.faurecia.com
Faurecia announced that it has signed a Memorandum of Understanding to acquire the remaining 50% of its SAS joint venture from Continental. This joint venture was established in 1996 and has become a key player in complex interior module assembly and logistics. The company employs 4,490 people in 19 facilities in Europe, North America and South America. Sales are expected to show strong growth in 2019 and should reach around EUR 700 million. This project would expand Faurecia’s systems integration offer to cover all interior modules as well as Faurecia’s new product lines such as displays, electronics, sensors and thermal management. The addition of SAS core competences in systems integration and complexity management would also strengthen Faurecia’s Just in Time plant network.

This project would be immediately accretive to Faurecia in operating margin, net income and ROCE. The financial performance would be consolidated into the Interiors Business Group. Synergies could be obtained in manufacturing engineering, logistics and footprint optimization as well as in purchasing and SG&A. With an order book showing strong growth potential, sales should exceed EUR 1 billion by 2024 (representing a CAGR of around 9%). Growth would be accelerated through regional and customer diversification particularly in China.

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Posted By : Mohan Sharma on Wed, 16 Oct 2019
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