COLUMBUS – Faurecia, a company of the FORVIA Group, in Columbus has entered into exclusive negotiations for the potential sale of a designated part of its commercial vehicle exhaust aftertreatment business in Europe and in the United States in a $160 million deal.
The potential sale includes two manufacturing plants, one located in Roermond, Netherlands, and one in Columbus, which would benefit if the transaction occurs from the integration within Cummins to secure long-term business for the supply of internal combustion engine exhaust aftertreatment for commercial vehicles.
Cummins is a trusted company producing engines for on-highway trucks, and 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 after treatment, mainly in China and India, will continue.
The potential transaction would contribute to FORVIA’s strategy to focus on light vehicle ultralow emission activities, in which Faurecia has a strong position while accelerating its hydrogen road map, a key enabler for zero-emission mobility.
“This transaction would reflect our long-lasting relationship with Cummins and would place Faurecia’s commercial vehicle after treatment activities within a committed engine manufacturer,” said Patrick Koller, CEO of Faurecia. “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 by the 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 engines in 2025 would reduce toward 10%.”
The potential transaction would be subject to customary conditions precedents, including regulatory approvals and completion of applicable employee representative consultations.
