Adient, a Plymouth-based automotive seating supplier, is selling its fabrics manufacturing and lamination business to Sage Automotive Interiors in South Carolina for $175 million. The sale is expected to be completed by the end of the fiscal year.
“As Adient continues to focus on its core business, we believe that the sale of our fabrics operation to Sage better positions that business for growth and long-term successful performance,” says Doug Del Grosso, president and CEO of Adient.
The pending sale includes 11 facilities globally, with the majority located in Europe, and nearly 1,300 employees. The fabrics business is expected to generate an approximate $240 million in revenue and slightly less than $20 million and adjusted earnings before interest, tax, depreciation, and amortization in the 2020 fiscal year for Adient.
Del Grosso says the pending sale aligns with Adient’s continuing strategy to focus on its core high-volume seating business. Proceeds from the transaction are expected to be used by Adient to pre-pay a portion of the company’s debt and for general corporate business.
Sage Automotive Interiors is an Asahi Kasei company. Asahi Kasei is based in Japan.
Adient has 83,000 employees in 35 countries and operates 220 manufacturing/assembly plants worldwide. They offer complete seating systems and individual components. The organization takes their products from research and design to engineering and manufacturing and into more than 23 million vehicles a year.