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25 September, 2019 - 27 September, 2019
01 October, 2019 - 01 October, 2019
Automotive seating Group Adient announced that it has signed a definitive agreement to acquire Michigan, U.S., headquartered Futuris Group. The purchase price is approximately US$360 million, including the assumption of approximately US$18 million of net debt.
Adient says it expects the transaction to add approximately US$500 million in revenue on an annual basis. Originally created in Australia, Futuris is owned by affiliates of Clearlake Capital Group. It is a global designer and manufacturer of fully integrated automotive seating and interior systems. It operates 15 facilities in North America and Asia and provides full seating systems, seat frames, seat trim, headrests, armrests and seat bolsters. In North America, the company's primary customers include Tesla, Ford and General Motors, while in Asia customers include Geely, Chery and Brilliance.
"Futuris has a rapidly growing book of business that strengthens our position with West Coast customers, improves our utilization rates in North America and expands our business in Southeast Asia. In China, Futuris' concentration on local brands is complementary to our existing business," said Bruce McDonald, Chairman and CEO, Adient.
The acquisition is expected to provide substantial synergies through vertical integration, purchasing and logistics improvements, and by applying “the best business practices and process optimisation of the Adient Manufacturing System to optimise operational efficiencies”.
Through its global interests, Futuris says it generates revenue of approximately US$580 million and employs approximately 5,500 employees, including approximately 3,550 in North America, 880 in Thailand and 580 in China. It delivers full seating systems for many different levels of vehicles, from mass-produced, small and low cost cars in China, to niche and luxury sports cars, to the versatility and complexity of multiple seat SUV’s.
The transaction is expected to close by approximately September 30, 2017, pending regulatory and anti-trust approvals.