PARIS (Agefi-Dow Jones)–Automotive supplier Faurecia revised on Monday its target for cost synergies linked to the integration of the German group Hella, whose acquisition was finalized at the end of January, now aiming for an annual impact of 250 million euros on its operating profit (Ebit).
“The execution of a major cost optimization and synergy plan will generate Ebit of more than 250 million euros, beyond what was initially announced, with an impact on the income statement of 80 % to be achieved in 2024,” the group said in a statement.
When the Hella takeover project was announced in August, Faurecia indicated that it was aiming for annual cost synergies of 200 million euros in terms of its gross operating surplus (EBITDA).
Faurecia has confirmed all of its other synergy targets related to this transaction. Revenue synergies should represent between 300 million and 400 million euros per year of additional turnover by 2025. The group also aims to optimize cash flow by around 200 million euros per year by average from 2022 to 2025.
The group also confirmed the financial objectives of the new entity by 2025, namely sales of more than 33 billion euros, an operating margin of more than 8.5% as well as a cash flow of around 1 .75 billion euros.
In addition, the new group will adopt a new name which will be announced during a press conference on Monday morning.
-Julien Marion, Agefi-Dow Jones; +33 (0)1 41 27 47 94; [email protected] ed: VLV
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February 07, 2022 02:43 ET (07:43 GMT)