ECIA
France: Takeover of Bertrand Faure? / Sales of FRF 26bn and 29,000 employees
French automotive supplier Ecia (35, rue Paul Vailant-Couturier, F-92305 Levallois, Peret), majority owned by PSA Peugeot Citroën, plans to acquire its competitor Bertrand Faure SA (178 Blvd. Haussmann, F-75008 Paris). This would create Europe's largest automotive supplier with FRF 26bn in sales and 29,000 employees. Ecia had sales in 1996 of FRF 9.5bn, including 40% in plastic components and 24% in automobile seats. Bertrand Faure is Europe's leading producer of automobile seats. Around 90% of its FRF 13.8bn sales in 1996 were in this sector.
The move follows the acquisition by Ecia of a 13% stake into Bertrand Faure in October 1996. By taking control of Ecia-Bertrand Faure, the holding of PSA and Citroën will create the second largest OEM in France, after Valeo, with an expected turnover of FRF 26bn. Daniel Dewavrin, currently CEO of Bertrand Faure, should be appointed as the head of the company, which will employ 29,000 people in 80 production units worldwide.
In it's main core-businesses, the new group will rank amongst the 5 leading OEM's in the world. It will be number 1 for front end modules, number 3 for seats and exhaust systems, and number 5 for car interior systems. According to Marc Gouget, financial analyst at BNP-Equities, "Ecia's global approach of car interior is quiet similar to those of the american OEM's Johnson Control and Lear Corporation, as well as Magna in Canada". At present, the firm supplies dashboards, electric systems, steering columns and wheels, and has Just in Time assembly plants for seats. However, seats only account for 20% of it's turnover, compared with 91% for Bertrand Faure, which produces most of it's components (frames, tracks, recliners, metallic suspensions, paddings, fabric covers).
According to D. Dewavrin, both companies have geographical synergies: "Bertrand will facilitate Ecia's relationships with Rover in the UK, whereas Ecia will help Bertrand Faure in Japan". Betrand Faure's CEO also pointed out that, after the sale of it's aeronautical branch Ratier Figeac, the group would carry on it's divestment policy by selling it's Delsey luggage business. On the other hand, Ecia will keep it's motorcycle branch (Peugeot scooters) whose sales amounted to USD 220m in 1997.
The move follows the acquisition by Ecia of a 13% stake into Bertrand Faure in October 1996. By taking control of Ecia-Bertrand Faure, the holding of PSA and Citroën will create the second largest OEM in France, after Valeo, with an expected turnover of FRF 26bn. Daniel Dewavrin, currently CEO of Bertrand Faure, should be appointed as the head of the company, which will employ 29,000 people in 80 production units worldwide.
In it's main core-businesses, the new group will rank amongst the 5 leading OEM's in the world. It will be number 1 for front end modules, number 3 for seats and exhaust systems, and number 5 for car interior systems. According to Marc Gouget, financial analyst at BNP-Equities, "Ecia's global approach of car interior is quiet similar to those of the american OEM's Johnson Control and Lear Corporation, as well as Magna in Canada". At present, the firm supplies dashboards, electric systems, steering columns and wheels, and has Just in Time assembly plants for seats. However, seats only account for 20% of it's turnover, compared with 91% for Bertrand Faure, which produces most of it's components (frames, tracks, recliners, metallic suspensions, paddings, fabric covers).
According to D. Dewavrin, both companies have geographical synergies: "Bertrand will facilitate Ecia's relationships with Rover in the UK, whereas Ecia will help Bertrand Faure in Japan". Betrand Faure's CEO also pointed out that, after the sale of it's aeronautical branch Ratier Figeac, the group would carry on it's divestment policy by selling it's Delsey luggage business. On the other hand, Ecia will keep it's motorcycle branch (Peugeot scooters) whose sales amounted to USD 220m in 1997.
15.01.1998 Plasteurope.com [18917]
Published on 15.01.1998