Adient PLC has completed its acquisition of the automotive seating manufacturer Futuris Group.
Adient said it paid approximately $360 million for the business, including the assumption of approximately $18 million of net debt, subject to adjustments.
The company anticipates the transaction will add approximately $500 million in revenue on an annual basis. It is expected to be accretive to Adient’s adjusted fiscal 2018 earnings per share.
Futuris operates 15 facilities in North America and Asia and 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. It was the first automotive seating company to focus on West Coast automakers, and has a large backlog of business with several of these customers. In Asia, customers include Geely, Chery and Brilliance.
The acquisition is expected to provide substantial synergies through vertical integration, purchasing and logistics improvements, and by applying the best business practices and process optimization of the Adient Manufacturing System to drive operational efficiencies.