Asahi Kasei company Sage Automotive Interiors, Greenville, S.C., has signed an agreement to purchase the automotive fabric business including lamination of Plymouth, Mich.-based Adient for $175 million. The agreement, expected to be complete by the end of FY 2020, is subject to the regulatory approvals and customary closing conditions.
Adient operates a number of facilities in Europe, and Sage hopes the acquisition — which includes 11 facilities and approximately 1,300 employees — will help in its goal to expand capacity and capability for automotive interior products for the European market. Adient’s automotive business is expected to generate approximately $240 million in revenue in FY 2020.
“Europe continues to be a key growth area for Sage Automotive interiors,” said Dirk Pieper, CEO, Sage. “In addition, the technology and capabilities that will now be part of Sage
Automotive Interiors will strengthen our ability to serve customers from our current locations in Europe and the rest of the world.”
“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,” said Doug Del Grosso, president and CEO, Adient.