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Forvia Targets Lower Debt with EUR1.8 Billion Sale of Interiors Unit

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-- Forvia (FRVIA.PA) will offload its interiors business group to Apollo-managed funds in a 1.82 billion-euro deal that will allow the French group to pare down debt and zoom in on technology-driven operations.

The unit delivered 18% of the automotive technology supplier's consolidated revenue in 2025, through 59 production sites and eight research and development centers across 19 countries, according to a Monday release. Forvia said the new owner intends to support the interiors business' development and transformation.

Forvia said the sale is a step towards the implementation of its Ignite strategy, presented at a capital markets day Feb. 24. All net proceeds of the transaction will be used to reduce the company's net debt by at least 1 billion euros, in line with management's plan to restore the group's financial structure.

"With regards to the Interior disposal, the expected debt reductions announced at the CMD have been confirmed and the cash-in is expected for 2026," Deutsche Bank Research said. "Improved visibility on the transaction is a positive, in our view. Overall, we do not expect consensus expectations to move much on the back of the release."

The deal is slated to close by the end of 2026, subject to customary regulatory clearances and consultation of the employee representative bodies. Forvia engaged Evercore as its lead financial adviser alongside Crédit Agricole CIB as financial adviser, while Baker McKenzie served as legal counsel.

Shares in Forvia dropped nearly 2% in midmorning trade.

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