Adient to acquire seating supplier Futuris Group for $360m

Ireland-based Adient, the seating solution company which designs, manufactures and markets a range of seating systems and components for passenger cars, commercial vehicles, light trucks, vans, pick-up trucks and SUVs, has entered into a definitive agreement to acquire the US-based Futuris Group for $360 million.

The Futuris Group, a global designer and manufacturer of fully integrated automotive seating and interior systems, currently operates 15 facilities in North America and Asia. The company 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, as well as other automotive seating suppliers. In Asia, customers include Geely, Chery and Brilliance.

The purchase price includes the assumption of approximate net debt of $18 million. Adient expects the transaction to add an additional $500 million in revenue on an annual basis.

“Futuris has a rapidly growing book of business that strengthens our position with West Coast customers, improves our utilisation 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. The transaction is expected to close by September 30, 2017, pending regulatory and anti-trust approvals.