Plastic Omnium takes full ownership of front-end module producer HBPO

Plastic Omnium (Île-de-France, France) signed an agreement to purchase Hella KGaA Hueck & Co.’s (Lippstadt, Germany) remaining 33.33% stake in HBPO GmbH (Lippstadt), giving it full ownership of the company, known for its complex automotive front-end modules (FEMs) — which, more often than not, are short- or long-glass polypropylene (PP). This acquisition was signed for an equity value of €290 million, fully financed from the group’s own resources. The transaction is subject to regulatory approval, expected in Q4 2022. 

HBPO was founded in 2004 as a joint venture between Plastic Omnium, Hella and Behr (Stuttgart). Plastic Omnium has held the majority of shares in HBPO since 2018 when it increased its stake to 66.66% of the share capital from the 33.33% it initially held. Since this date, HBPO has been fully consolidated by Plastic Omnium.

Owning 100% of HBPO positions Plastic Omnium to develop new modules and systems by taking advantage of new lighting capabilities. The acquisition of HBPO’s remaining shares also supports the company’s strategy to increase the value-added content per vehicle, while leveraging the growing demand for electric vehicles (EVs). It also unlocks development opportunities and further reinforce Plastic Omnium’s proximity with premium and German OEMs. HBPO headquarters will remain in Lippstadt, where management is located.

“The acquisition of the remaining 33.33% of HBPO will allow Plastic Omnium to implement its growth strategy by broadening the range of modules offered.” Laurent Favre, chief executive officer (CEO) of Compagnie Plastic Omnium SE, emphasizes. “Thanks to HBPO’s strong relationships with premium customers, Plastic Omnium will be able to meet demand for more and more complex modular innovations accompanying the shift towards electric vehicles. The complementarity of the group’s business lines will allow Plastic Omnium to offer smart and fully integrated solutions to the automotive market as it transitions toward more sustainable and connected mobility.”

With 2,800 employees at 31 plants in 11 countries over the U.S., European and Asian continents, HBPO assembles more than five million FEMs every year.