Faurecia, a company of the FORVIA Group, has entered into exclusive negotiations with Cummins for the potential sale of a designated part of its commercial vehicle exhaust aftertreatment business in Europe and in the United States for an enterprise value of more than $160 million.
The potential sale includes two manufacturing plants, a Faurecia plant in Columbus where Cummins is headquartered, and the other in Roermond, Netherlands. Faurecia said the two plants would benefit if the transaction occurs from the integration within Cummins to secure long-term business for the supply of in-ternal combustion engines exhaust aftertreatment for commercial vehicles.
Cummins has partnered with Faurecia in 2010, obtaining key engine components for on-highway trucks and off-highway vehicles, includign exhaust aftertreament, Faurecia officials said.
Faurecia’s Clean Mobility activities in commercial vehicles exhaust and aftertreatment, mainly in China and India, will continue, company officials said.
The potential transaction would contribute to FORVIA’s strategy to focus on light vehicle ultra-low emission activities, in which Faurecia has a strong position, while accelerating its hydrogen roadmap, a key enabler for zero-emission mobility.
“This transaction would reflect our long-lasting relationship with Cummins and would place Faurecia’s commercial vehicle aftertreatment activities within a committed engine manufacturer. 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,” said Patrick Koller, CEO of Faurecia.
Faurecia, a company of the Group FORVIA, is a global automotive technology leader with 257 industrial sites, 39 research and development centers and 111,000 employees in 33 countries, focusing on interiors, Clarion Electronics and Clean Mobility.
For more information, visit faurecia.com.