FAURECIA SIGNED AN AGREEMENT TO TRANSFER TO CUMMINS A PART OF ITS COMMERCIAL VEHICLE BUSINESS IN EUROPE AND IN THE UNITED STATES
FAURECIA SIGNED AN AGREEMENT TO TRANSFER TO CUMMINS A PART OF ITS COMMERCIAL VEHICLE BUSINESS IN EUROPE AND IN THE UNITED STATES
Following an exclusive negotiations phase, Faurecia, a FORVIA Group company, and Cummins have signed a Share and Asset Purchase Agreement under which Faurecia will sell a part of its commercial vehicle exhaust aftertreatment business in Europe and the US to Cummins for an enterprise value of 142EUR million after final technical adjustments.
The agreement transfers two Faurecia manufacturing plants located in Roermond, the Netherlands and Columbus, Indiana, USA and their associated activities to Cummins.
It secures the integration of these plants and their employees into Cummins’ worldwide operations, ensuring their long-term viability. This enables Faurecia to focus on its exhaust activities on light vehicle ultra-low emission systems and its hydrogen roadmap.
Faurecia’s Clean Mobility activities in commercial vehicles exhaust and aftertreatment in other regions, mainly in China and India, will continue.
Patrick Koller, CEO of Faurecia, declared: “I welcome the signing of this agreement with our longstanding partner Cummins. The transfer of these plants and their activities to a trusted engine manufacturer is good news for the plants long term viability and I am confident our employees and the business will succeed under Cummins ownership. This transfer enables Faurecia to focus on its leadership positions in the market in ultra-low and zero emission including hydrogen solutions. The proceeds from this transaction will contribute to FORVIA’s asset disposal program of €1 billion by the end of 2023, part of its Power25 Plan.”
The closing of this transaction is subject to regulatory approvals and employee representative information and is expected before the end of the year.
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