PARIS (Reuters) - French car parts group Faurecia (EPED.PA) said on Monday it had agreed to buy full control of the SAS joint venture it runs with German auto group Continental (CONG.DE), in a deal which should boost the company’s profits.
Faurecia said it would buy the remaining 50% stake in the venture from Continental for 225 million euros ($248 million), and that the takeover would be immediately accretive to its operating margin, net income and return on capital employed.
Faurecia shares were down 2% in early session trading.
The SAS joint venture was established in 1996 and the company has become a key player in complex interior module assembly and logistics, with 2019 sales expected to reach around 700 million euros, said Faurecia.
“SAS has a strong growth potential and represents an excellent opportunity for Faurecia strategically and financially,” said Faurecia chief executive Patrick Koller.
Reporting by Sudip Kar-Gupta and Benoit Van Overstraeten; Editing by Muralikumar Anantharaman