Detroit-based automotive seating supplier Adient has completed the acquisition of automotive seating manufacturer Futuris Group. Adient paid approximately $360 million for the business, including the assumption of $18 million of net debt, subject to adjustments.
Adient expects the transaction to add approximately $500 million in revenue on an annual basis and is expected to be accretive to Adient’s adjusted fiscal 2018 earnings per share.
Futuris operates 15 facilities in North America and Asia, including a corporate headquarters in Oak Park, and facilities in Madison Heights and Charlotte. The company’s primary customers include Tesla, Ford Motor Co., and General Motors Co., and other automotive seating suppliers.
Futuris was the first automotive seating company to focus on West Coast automakers and has a large backlog of business with several of these customers. Its Asian clients include Geely, Chery, and Brilliance.
Adient’s acquisition is expected to provide substantial synergies through vertical integrations, purchasing, and logistics improvements, and by applying business best practices and process optimization of the Adient Manufacturing System to drive operational inefficiencies.
Adient currently employs 75,000 people at more than 230 manufacturing and assembly plants in 33 countries worldwide.