NANTERRE, France—Faurecia has agreed to buy out the remaining 50 percent of its car interiors joint venture with Continental A.G.
According to a memorandum of understanding, Faurecia will pay about $248 million (excluding cash) for the business, SAS.
The acquisition will enable Faurecia to offer all the internal modules of passenger cars. It will fit into the company's interiors business group, where cost savings should be possible. These would be made by rationalizing production sites, purchasing, logistics and engineering.
"SAS has shown strong growth potential and represents an excellent opportunity," Faurecia CEO Patrick Koller said in a statement.
The joint venture is expected to have sales of close to $775 million in 2019. Booked orders indicate this number could rise to $1.1 billion by 2024. The deal immediately should boost Faurecia's net income, operating margin and return on capital employed.
SAS employs 4,490 people in 19 factories in Europe, North and South America.