PARIS – Plastics Omnium will buy Hela’s 33 percent stake in the HBPO joint venture, which manufactures front-end modules, for 290 million euros ($295 million), the two companies have said.
The move would give Plastics Omnium wholly ownership of the joint venture, which was established in 2004 with a third partner, Behr (later a part of Mahle). Plastic Omnium bought Mahle’s shares in 2018 and gave him a 66 per cent stake.
The deal is expected to close in the fourth quarter.
HBPO has been fully integrated into Plastic Omnium’s financial statements since the purchase of the Mahle stake. The unit’s revenue in 2021 was 2.2 billion euros.
Front-end modules include lighting, bumpers, grille, radar and other driving assistance sensors and radiators as per customer needs. The finished product bolts to the vehicle in one piece during assembly.
HBPO, which is based in Lippstadt, Germany, says it has a market share of about 20 percent for the modules, producing about 24,000 a day.
Known as a lighting supplier, Hella was bought this year by Plastic Omnium’s French rival Faurasia after a bidding war between the two companies. Plastics Omnium has acquired two lighting providers, Varoq and Osram, over the past year.
Plastic Omnium CEO Laurent Favre did not say whether those companies’ lighting would be integrated into the front-end modules.