PARIS -- French auto supplier Faurecia said on Monday it had agreed to buy full control of the SAS joint venture it runs with German auto group Continental, in a deal which should boost the company's profits.
Faurecia said it would buy the remaining 50 percent 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.
The deal is expected to close in early 2020.
The SAS joint venture was established in 1996 and has become a key player in complex interior module assembly and logistics, with 2019 sales expected to reach around 700 million euros ($772 million), said Faurecia. SAS employs 4,490 people in 19 facilities in Europe, North America and South America
"SAS has a strong growth potential and represents an excellent opportunity for Faurecia strategically and financially," said Faurecia CEO Patrick Koller said in a statement.
Faurecia ranks No. 9 on the Automotive News list of top 100 global suppliers, with 2018 sales to automakers of $20.66 billion.