Adient, a global leader in automotive seating, announced today it has closed the transactions contemplated by its previously announced definitive agreement with joint venture partner Yanfeng Automotive Trim Systems Co., Ltd. (Yanfeng) to make certain changes to their existing joint venture relationships that was entered into on January 31, 2020, and amended on June 24 this year.
At closing, Adient received cash proceeds of USD 309 million related to the sale of Adient’s 30 percent ownership stake in Yanfeng Global Automotive Interior Systems Co., Ltd. (YFAI) to Yanfeng and approximately USD 20 million related to the sale of certain mechanisms business patents and other intellectual property to Adient Yanfeng Seating Mechanisms Co., Ltd. (AYM). In addition to the USD 309 million paid at the closing for its 30 percent ownership stake in YFAI, Adient is entitled to receive an additional USD 60 million for the sale of such stake, payable on a deferred basis. With respect to each YFAI fiscal year ending after the closing, starting with the year ending Dec. 31, 2020, Adient will be paid an earnout in an amount equal to 30 percent of YFAI’s distributable earnings for such year until such time as the USD 60 million deferred purchase price is fully paid. Also, Adient and Yanfeng extended the term of Yanfeng Adient Seating Co., Ltd.’s (YFAS) joint venture agreement to December 2038.
Adient is a global leader in automotive seating. With approximately 80000 employees in 34 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.