Connect with us

Manufacturing

Asahi Kasei To Acquire Sage Automotive Interiors

Asahi Kasei said it considers complementing its business portfolio with Sage’s business to be an effective means of accelerating its expansion in the automotive field.

Advertisement

Asahi Kasei has announced it will acquire Sage Automotive Interiors Inc., a U.S-based manufacturer of automotive interior material, for a cash transaction price of approximately $700 million. An agreement regarding the acquisition was concluded between Asahi Kasei and Clearlake Sage Holdings LLC, the 100 percent owner of Sage.

Advertisement
Click Here to Read More
Advertisement

Under its “Cs for Tomorrow 2018” medium-term strategic initiative, Asahi Kasei is focused on expanding automotive-related business as a priority in the Material sector. The company is currently working across the sector to strengthen relationships with vehicle manufacturers and their suppliers while expanding operations globally.

The automotive industry is in a period of transformation referred to as “CASE,” indicating trends toward connected, autonomous, shared and electric vehicles. Such new trends create significant growth opportunities, including demand for vehicle interiors with greater comfort and innovative design. The market for automotive interior materials is thus expected to continue expanding over the longer term.

Asahi Kasei supplies Lamous microfiber suede to Sage, and the two companies have a longstanding mutually beneficial business relationship. A leader in the development and manufacture of material for automotive interiors, Sage holds the No. 1 global share for woven and knitted vehicle seat fabric. Sage has established a strong presence among vehicle manufacturers and their suppliers based on its comprehensive proposal capabilities, advanced design capabilities and processing technology related to automotive interior material.

Asahi Kasei said it considers complementing its business portfolio with Sage’s business to be an effective means of accelerating its expansion in the automotive field. Last October, the two companies began talks that led to the agreement for Asahi Kasei’s acquisition of Sage.

Advertisement

Asahi Kasei said it believes the acquisition will strengthen its position in the growing automotive interior material market, contributing to the overall expansion of its automotive-related business.

The transaction price of approximately $700 million will change depending on the fluctuation of cash and debt balance, working capital, etc., at the time of closing. The total acquisition price, including Sage’s interest-bearing debt, is approximately $1.06 billion. Closing of the transaction is conditional upon performing the required procedures in accordance with each relevant country’s antitrust regulations, and obtaining approval from the relevant authorities.

With closing of the transaction, Sage will become a consolidated subsidiary of Asahi Kasei.

Advertisement

SKF Earns AAM Supplier Of The Year Recognition

Permatex PowerNation Sweeps Winner Gets His Challenger Back

Schaeffler Named A 2019 GM Supplier Of The Year Winner

Champion Offering Private Label Hand Sanitizer

Advertisement

POPULAR POSTS

Sponsored Content

Why Trucks Are The Future Of The Aftermarket Sweet Spot

Sponsored Content

How to Talk to Customers About Aftermarket Spark Plugs

Sponsored Content

4 Mistakes Even a Pro Can Make When Installing a Water Pump

Sponsored Content

5 Reasons to Upgrade Your Spark Plugs

Connect