Apollo-managed funds will buy FORVIA’s Interiors business for an enterprise value of €1.82bn, in a carve-out that removes a unit responsible for about 18% of the group's revenue and is expected to reduce FORVIA’s net debt by at least €1bn, the companies said. The deal values the unit at 3.1x its 2025 IFRS Adjusted EBITDA; closing is targeted by year-end, subject to employee consultations and regulatory approvals.

Deal terms and valuation

Key deal facts:

  • Enterprise value: €1.82 billion.
  • 2025 IFRS Adjusted EBITDA: €582 million, implying a 3.1x multiple (4.8x excluding R&D capitalisation and leases).
  • Expected net debt reduction for FORVIA: at least €1 billion after customary adjustments (minority interests, working capital, pensions, carve-out and tax costs).
  • Structure: a carve-out in which the buyer takes control of specific assets, operations and liabilities tied to the interiors business.
  • Conditions: subject to employee information and consultation processes and customary regulatory clearances; management targets closing by year-end.

Scale, customers and operations

FORVIA Interiors supplies instrument panels, door panels, centre consoles and related cabin systems. The business contributed roughly 18% of FORVIA’s consolidated revenue — about €4.8 billion in 2025 — and employed more than 31,000 people across 59 production sites and eight R&D centres in 19 countries. It serves a diversified set of major OEMs and is embedded in large vehicle programmes, giving it long production timelines and deep platform ties.

Those long-running contracts create both value and complexity: car programmes lock in volumes and designs once under way, even as cabin design becomes a point of differentiation with premium materials and new in-cabin technologies. Apollo says it sees an opportunity to run the unit as an independent company focused on those trends.

Why Apollo is buying

Apollo’s private equity arm has substantial automotive experience and a portfolio of suppliers that it says generate around US$28 billion in annual revenue and employ more than 120,000 people across 50 countries. The firm argues that operational know‑how and scale benefits from its existing holdings can support the interiors business as a standalone company.

Private equity buyers typically pursue carve-outs to streamline operations, focus resources and accelerate targeted investments. Apollo has framed the acquisition as a chance to invest in materials, engineering and integration with in-cabin technologies so the unit can capture greater cabin-driven spend. FORVIA’s management said the sale will allow the group to sharpen its focus on higher-value, technology-led activities.

Impact on FORVIA and its balance sheet

FORVIA has presented the sale as a central element of its IGNITE strategy, aimed at concentrating the group on technology-driven, higher-margin businesses. Management has said net proceeds will be used to repay financial debt, improving leverage metrics and giving the company greater financial flexibility for future investment.

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Closing is targeted by year-end, subject to employee consultations and customary regulatory clearances.

This article was created with AI assistance.