Adient, a global automotive seating supplier with offices in Detroit and Plymouth, today announced a definitive agreement to acquire Futuris Group, located in Oak Park. The purchase price is approximately $360 million, including the assumption of approximately $18 million of net debt.
Futuris, owned by affiliates of Clearlake Capital Group, is a global designer and manufacturer of fully integrated automotive seating and interior systems with 15 facilities in North America and Asia.
The company provides full seating systems, seat frames, seat trim, headrests, armrests, and seat bolsters for Tesla, Ford Motor Co., General Motors Co., and other automotive seating suppliers.
“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,” says Bruce McDonald, Adient’s chairman and CEO. “We believe this transaction will create new value for our shareholders.”
The acquisition is expected to provide substantial synergies through vertical integration, purchasing and logistics improvements, and by applying improved business practices and process optimization of the Adient Manufacturing System to optimize operational efficiencies.
The transaction is expected to close by Sept. 30, pending regulatory and anti-trust approvals. Adient expects the transaction will 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.