Faurecia to take full control of SAS venture from Continental

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, Automotive News reads.

Faurecia said it would buy the remaining 50 percent stake in the venture from Continental for 225 million euros, 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, 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,” Faurecia CEO Patrick Koller said in a statement.