FILE PHOTO: Patrick Koller, Chief Executive Officer of French car parts supplier Faurecia, poses before the company’s 2016 annual results presentation in Paris, France, February 9, 2017. REUTERS/Philippe Wojazer/File Photo
PARIS (Reuters) – French car parts group Faurecia (EPED.PA) said on Monday it had agreed to buy full control of the SAS joint venture it runs with German auto group Continental (CONG.DE), in a deal which should boost the company’s profits.
Faurecia said it would buy the remaining 50% stake in the venture from Continental for 225 million euros ($248 million), and that the takeover would be immediately accretive to its operating margin, net income and return on capital employed.
The SAS joint venture was established in 1996 and the company has become a key player in complex interior module assembly and logistics, with 2019 sales expected to reach around 700 million euros, said Faurecia.
“SAS has a strong growth potential and represents an excellent opportunity for Faurecia strategically and financially,” said Faurecia chief executive Patrick Koller.
Reporting by Sudip Kar-Gupta and Benoit Van Overstraeten; Editing by Muralikumar Anantharaman