Prime Highlights
- FORVIA to sell its Interiors business to Apollo-managed funds for €1.82 billion.
- The deal will help reduce FORVIA’s net debt by at least €1 billion and sharpen strategic focus.
Key Facts
- FORVIA is a global automotive technology company formed from Faurecia and HELLA.
- The Interiors unit contributes about 18% of the company’s total revenue.
Background
FORVIA will hand over its Interiors business unit to funds managed by Apollo Global Management for €1.82 billion. The transaction marks a major step in FORVIA’s strategy to focus on high-value, technology-driven operations while improving its financial position.
The company is confident that the agreement will help decrease its net debt by at least €1 billion. Most of the funds will be used for the repayment of liabilities and improving its financial situation. This deal corresponds with the IGNITE strategy implemented by FORVIA.
The Interiors unit makes up approximately 18% of FORVIA’s consolidated sales and provides an annual revenue of €4.8 billion. It operates 59 production sites and 8 research centres across 19 countries, employing more than 31,000 people. Apollo plans to support the unit’s transformation and growth as an independent business.
FORVIA’s CEO Martin Fischer said the deal reflects the strong market position and growth potential of the Interiors unit. He added that Apollo has the expertise to guide the business into its next phase. Apollo’s private equity partner, Michael Reiss, noted that rising demand for advanced cabin design and new technologies is reshaping the automotive interiors sector, creating new opportunities.
The deal values the business at a multiple of 3.1 times its adjusted EBITDA. The transaction remains subject to regulatory approvals and employee consultations, with completion expected by the end of the year.