Japanese firm acquires Sage Automotive Interiors for US$ 1.06 billion, including a Mexican plant
Clearlake Capital Group, L.P., a California-based private investment firm, in recent days announced a definitive agreement to sell its global company Sage Automotive Interiors for a cash transaction price of approximately US$ 700 million plus debt to Asahi Kasei Corporation, a Japanese chemicals and materials manufacturer.
Sage is a global supplier of specialty designed, high-performance technical textiles and microfiber suedes for seating, door panel surfaces, and headliners for the automotive industry. The company operates a manufacturing facility in Ecatepec, State of Mexico.
Some of the automakers that use Sage Automotive products include Honda, Toyota, Hyundai, Kia, Ford, General Motors, Chrysler, Nissan, Mazda, Volkswagen, Fiat, Suzuki, BMW, Jaguar and Mercedes-Benz.
“The automotive industry is in a period of transformation (…) new trends create significant growth opportunities, including demand for vehicle interiors with greater comfort and advanced design. The automotive interior-related market is thus expected to continue expanding over the longer term,” said in a statement Asahi Kasei Corporation on the reason for the acquisition.
The transaction price will ultimately change depending on fluctuation of cash and debt balance, working capital, etc., at the time of closing. The total acquisition price including Sage’s net interest-bearing debt is US$ 1.06 billion. The transaction is subject to customary closing conditions and regulatory approvals.