FAURECIA AND CUMMINS IN EXCLUSIVE NEGOTIATIONS REGARDING THE POTENTIAL SALE OF A DESIGNATED PART OF FAURECIA’S COMMERICAL VEHICLE EXHAUST BUSINESS IN EUROPE AND THE UNITED STATES
NANTERRE (FRANCE)
FEBRUARY 16, 2023
FAURECIA AND CUMMINS IN EXCLUSIVE NEGOTIATIONS REGARDING THE POTENTIAL SALE OF A DESIGNATED PART OF FAURECIA’S COMMERICAL VEHICLE EXHAUST BUSINESS IN EUROPE AND THE UNITED STATES
Faurecia, a company of the FORVIA Group, has entered into exclusive negotiations with Cummins for the potential sale of a designated part of its commercial vehicle exhaust aftertreatment business in Europe and in the United States for an enterprise value of EUR150 million.
The potential sale includes two manufacturing plants, one located in Roermond, Netherlands, and one in Columbus, Indiana, USA, which would benefit if the transaction occurs from the integration within Cummins to secure long-term business for the supply of internal combustion engines exhaust aftertreatment for commercial vehicles.
Cummins is a trusted company producing engines for on-highway trucks, off-highway vehicles, as well as key engine components including exhaust aftertreatment and is a close and reliable partner of Faurecia since 2010.
Faurecia’s Clean Mobility activities in commercial vehicles exhaust and aftertreatment, mainly in China and India, will continue.
The potential transaction would contribute to FORVIA’s strategy to focus on light vehicle ultra-low emission activities, in which Faurecia has a strong position, while accelerating its hydrogen roadmap, a key enabler for zero-emission mobility.
Patrick Koller, CEO of Faurecia, declared: “This transaction would reflect our long-lasting relationship with Cummins and would place Faurecia’s commercial vehicle aftertreatment activities within a committed engine manufacturer. Cummins is a trusted partner, and this potential transaction would secure the plants’ activities. I am confident that our employees, customers, and the business overall would develop under the new ownership.
This potential sale would also mark another important milestone in FORVIA’s divestment program of €1Bn by end-2023 and is further testimony that we are delivering on our Power25 plan as announced at our last Capital Markets Day in November 2022. With this transaction, the Group's exposure to internal combustion engine in 2025 would reduce towards 10%.”
The potential transaction would be subject to customary conditions precedents, including regulatory approvals and completion of applicable employee representative consultations.
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