Lear to buy Grupo Antolin seating for EUR286m
Lear has inked a definitive agreement to acquire Grupo Antolin's automotive seating business for EUR286m (US$307m).
Grupo Antolin's seating business is headquartered in France with sales and operations in five countries in Europe.
The seating supplier's operations comprises Grupo Antolin's just-in-time assembly, structures, mechanisms and trim.
The transaction is valued at EUR286m on a cash and debt free basis, with Lear intending to fund it with cash on hand. The closing of the transaction is expected to occur in the first half of 2017 subject to customary conditions, including regulatory approvals in Europe.
Lear expects the transaction to be accretive to 2017 earnings per share upon closing.
"The acquisition of Grupo Antolin's seating business in Europe is another important step in strengthening our core seating business by further diversifying our global seating sales, expanding our seat component capabilities and accelerating profitable sales growth," said Lear president and CEO, Matt Simoncini.
"This transaction will enhance Lear's position as a global leader in automotive seating and will create significant value for our shareholders."
Grupo Antolin's seating business has annual sales of around EUR300m and includes 12 manufacturing facilities and two technological centres, as well as 2,273 full-time and contract employees.
Data from just-auto's QUBE service shows Lear's seating segment includes the manufacture, assembly and supply of vehicle seating components and systems.
The company manufactures seat systems for passenger cars and light trucks, which are fully assembled and frequently supplied on a JIT/JIS basis from manufacturing facilities close to OEMs' assembly plants.
The seating business, second in global market penetration to Adient, generated revenue of US$14.36bn in 2016 – 77.4% of the group total of US$18.56bn.