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        IMA

Automotive: Lear to acquire Grupo Antolin’s seating business; Magna opens seating hq in Michigan

SEATING

Global supplier of automotive seating and electrical systems Lear Corporation is acquiring Spanish firm Grupo Antolin's automotive seating business. The transaction is valued at EUR286 million on a cash and debt free basis. Lear intends to fund the transaction 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.

Grupo Antolin's seating business is headquartered in France with sales and operations concentrated in five countries in Europe. The business is comprised of just-in-time seat assembly, seat structures & mechanisms and seat trim, and is well positioned among the largest European automakers, including Peugeot Citroen, Daimler, Renault Nissan and Volkswagen.

Grupo Antolin says the divesture is in line with its growth strategy, which focuses on existing business units with solid market shares and international presence. The interior parts company intends to accelerate investments already planned to improve its production capabilities, open new factories, and increase R&D capabilities to deliver the best interior solutions to its customers.

"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 Matt Simoncini, Lear's President/CEO. "This transaction will further 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 approximately EUR300 million and includes 12 manufacturing facilities, two technological centres and 2,273 full-time and contract employees.

In other news, Magna International’s seating business has moved into a new headquarters in Novi, Michigan. The facility includes three floors and 180,000 sq ft of space to house 450 employees for future growth, Magna's- including functions such as accounting, sales & marketing, purchasing, human resources and engineering.

“It’s exciting to begin the next chapter for Magna Seating at our new home, which has been built to suit the needs of our employees and customers for years to come,” said Mike Bisson, President of Magna Seating. “Thank you to all the hard-working people, both within Magna and in the State of Michigan, Novi and Oakland County communities, who helped make this vision a reality. Our new space allows us to be flexible and cost-effective with the ability to seamlessly communicate globally through the use of intuitive technology.”

Magna is a global leader in automotive seating systems and mechanisms. With 50 assembly and manufacturing locations and six engineering centres around the world, Magna provides flexible, lightweight seat solutions to automakers in North America, South America, Europe and Asia.

(IMA)


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