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 USD 175 million. 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 ~1300 employees. The fabrics business is expected to generate approximately USD 240 million in revenue and slightly less than USD 20 million 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.
Adient is a global leader in automotive seating. With 83000 employees in 35 countries, Adient operates 220 manufacturing/assembly plants worldwide. We produce and deliver automotive seating for all major OEMs. From complete seating systems to individual components, our expertise spans every step of the automotive seat-making process. Our integrated, in-house skills allow us to take our products from research and design to engineering and manufacturing – and into more than 23 million vehicles every year.