Automotive Supplier Faurecia to Acquire Emissions Control Company EMCON Technologies

2 November 2009

Faurecia, a leading global automotive supplier, has signed an agreement to acquire EMCON Technologies (originally Arvin Industries), a leader in the global exhaust emission control technology industry. EMCON serves worldwide passenger car, commercial vehicle and engine manufacturers. Based in Troy (Michigan, USA), EMCON posted 2008 sales of €2.4 billion (US$3.5 billion) and employs 6,000 people in 19 countries.

Once the deal is completed, EMCON Technologies will immediately join Faurecia’s Exhaust Systems to form Faurecia Emissions Control Technologies. The post-deal sales of Faurecia Emissions Control Technologies will be €5.2 billion (US$7.7 billion), based on 2008 figures.

Headquarted in Nanterre, France, Faurecia focuses on four key business areas: seating; interiors; front ends; and emissions control technologies. The acquisition of EMCON augments Faurecia’s research and development capabilities in exhaust systems; provides an entry into the commercial and off-road vehicles market; and broadens its customer base.

The acquisition of 100% of EMCON Technologies’ shares will be paid exclusively by the issue of 20.9 million new Faurecia shares, with no cash impact and no significant impact on the group’s debt. It will generate annual synergies of around €60 million, or 2.5% of 2008 combined sales (excluding monoliths). Faurecia’s objective is for this deal to be accretive on the net income per share from fiscal 2011.

Following the deal, PSA Peugeot Citroën will remain Faurecia’s reference shareholder and hold 57.4% of the capital.