PARIS, Oct 26 (Reuters) - French car parts company Faurecia has agreed to buy Japanese car navigation system maker Clarion from Hitachi in a 141 billion yen ($1.3 billion) deal to strengthen its presence in the field of new auto technologies.
Faurecia said on Friday that it would offer 2,500 yen per share for Clarion, representing a 10.5 percent premium to Clarion’s closing price of 2,263 Yen on Oct. 25.
Faurecia added its offer represented a total purchase price of 141 billion yen, marking a transaction multiple of 5.7 times March 2018 core EBITDA earnings, including run-rate synergies estimated at 90 million euros by 2022.
“The combined product and technology offer of Faurecia and Clarion and our complementary geographic presence and customer portfolios would create significant value for all stakeholders,” said Faurecia chief executive Patrick Koller in a statement.
$1 = 112.1600 yen Reporting by Sudip Kar-Gupta; Editing by Mathieu Rosemain