...August 18, 2021 - France-headquartered global auto supplier Faurecia plans to acquire German supplier of automotive lighting and electronics solutions Hella GmbH & Co. KGaA (Hella) for 60 per share, valuing the company at about 6.7 billion, and expects to close the transaction in early 2022. - In our view, the acquisition will significantly diversify Faurecia's product portfolio, add segments with higher technology content, increase its revenue base by about 40%, and lift its adjusted EBITDA margin by about one percentage point compared with our stand-alone forecast. - We think these benefits offset our adjusted funds from operations (FFO) to debt weakening by 5¡8 percentage points as a result of the transaction compared with our previous forecast of 25%-31% for 2022¡2023. That said, the build-up of leverage is cushioned by the company's decision to fund about 1.3 billion of the purchase price with equity and explore supplementing future organic leverage reduction with selective disposals....
