By William Horobin
Of DOW JONES NEWSWIRES
PARIS -(Dow Jones)- Car parts maker Faurecia SA (EO.FR) Monday said it's buying US EMCON Technologies in an all-share deal, a move which will dilute the holding of French car maker PSA Peugeot Citroen (UG.FR) in Faurecia.
Faurecia will buy the Troy, Michigan-based emission control technologies group for 20.9 million new Faurecia shares, cutting Peugeot's Faurecia stake to 57.4% from 70.85%.
Faurecia shares closed Friday at EUR13.21.
"We welcome this new and important step of the development of Faurecia," Peugeot Chairman Philippe Varin said.
"Faurecia is now ideally placed in the leading pack of worldwide equipment suppliers. PSA Peugeot Citroen, as reference shareholder of Faurecia, will continue to support its development strategy," he added.
One Equity Partners, an investment fund of JPMorgan Chase & Co. (JPM), and current shareholder of EMCON Technologies, will hold a 19% stake and be represented with two seats at Faurecia's Board of Directors as well as one seat on the Board's Strategic Committee.
Faurecia said the deal will have no cash impact and no significant effect on its debt.
It expects EUR60 million of synergies, or 2.5% of combined 2008 sales and Faurecia aims for the deal to be accretive on the net income per share from fiscal 2011.
Company Web site: www.faurecia.com
-By William Horobin, Dow Jones Newswires; +33 1 4017 1740; william.horobin@dowjones.com