French automotive supplier Forvia has agreed to sell its auto interiors business to funds managed by Apollo Global Management in a deal valued at $2.1 billion, the Wall Street Journal reported. The transaction represents one of the more significant divestitures in the auto parts sector this year and reflects the ongoing pressure on traditional automotive suppliers to streamline operations as the industry contends with shifting demand and the transition to electric vehicles.
Forvia, formed from the merger of Faurecia and Hella in 2022, has been working to reduce debt and sharpen its focus on core businesses since the combination. Shedding the interiors unit allows the company to concentrate resources on segments it considers higher priority, including hydrogen systems, clean mobility, and cockpit electronics.
Apollo, one of the largest alternative asset managers in the world, has been an active acquirer of industrial and manufacturing businesses. The firm manages hundreds of billions in assets and has a track record of buying units spun off from large industrial groups, often with a view toward operational improvement before an eventual exit.
The interiors segment being sold produces components including door panels, instrument panels, and overhead systems used across a wide range of vehicle platforms. These are mature, capital-intensive product lines where scale and cost efficiency are critical, making them a natural fit for a private equity buyer focused on operational restructuring.
Details on the expected closing timeline and any regulatory approvals required were not immediately available. The deal is subject to customary closing conditions.
