French auto-parts maker Faurecia SE said Oct. 14 that it will buy out the remaining 50% of its SAS Autosystemtechnik GmbH & Co.KG joint venture from Germany's Continental AG for €225 million.
The two companies formed SAS in 1996. SAS, which manufactures cockpit modules for vehicles, employs 4,490 people in 19 facilities in Europe, North America and South America. It counts major carmakers among its clients, including Renault SA, Volkswagen AG, AUDI AG, Fiat Chrysler Automobiles NV, Volvo Car Corp., Tesla Inc., Daimler AG-owned Mercedes Benz and Ford Motor Co.
Faurecia said its takeover of SAS would expand the company's systems integration offer to cover all interior modules, in addition to Faurecia's new product lines including displays, electronics, sensors and thermal management.
In 2019, the joint venture's sales are expected to reach around €700 million and to exceed €1 billion by 2024. Faurecia said the acquisition would be immediately accretive to the group in operating margin, net income and return on capital employed.
"This project would enhance our cockpit systems expertise for the Cockpit of the Future. SAS has a strong growth potential and represents an excellent opportunity for Faurecia strategically and financially," Faurecia CEO Patrick Koller said in a statement.
The deal is expected to close in early 2020, subject to information of employee representative bodies and to the appropriate regulatory approvals.