Adient, a global leader in automotive seating, has entered into an agreement to sell its automotive fabrics manufacturing business, including its lamination business, to Sage Automotive Interiors, an Asahi Kasei company, for $175M. The transaction is subject to regulatory approvals, local legal requirements and other customary closing conditions and is expected to be completed by the end of FY 2020.
The pending sale includes 11 facilities globally, with the majority located in Europe, with approximately ~1,300 employees. The fabrics business is expected to generate approximately $240M in revenue and slightly less than $20M and adjusted EBITDA in fiscal year 2020 for Adient.
The pending sale aligns with Adient’s continuing strategy of focusing on its core, high-volume seating business. Proceeds from the transaction are expected to be used by Adient to pre-pay a portion of the company’s debt and for general corporate purposes.
“As Adient continues to focus on its core business, we believe that the sale of our fabrics operation to Sage better positions that business for growth and long-term successful performance,” said Doug Del Grosso, president and CEO of Adient.
SOURCE: Adient
