Adient agrees to purchase automotive seating supplier Futuris Group

PLYMOUTH, Mich., Aug. 21, 2017 /PRNewswire/ -- Adient PLC. (NYSE: ADNT), the global leader in automotive seating, announced today it has signed a definitive agreement to acquire Futuris Group. The purchase price is approximately $360 million including the assumption of approximately $18 million of net debt. Privately held Futuris is headquartered in Oak Park, Michigan.

Adient expects the transaction to add approximately $500M in revenue on an annual basis. It is expected to be accretive to Adient's adjusted fiscal 2018 earnings per share.

Futuris, owned by affiliates of Clearlake Capital Group, is a global designer and manufacturer of fully integrated automotive seating and interior systems. It operates 15 facilities in North America and Asia.

The company 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 growing backlog of business with several of these customers. In Asia, customers include Geely, Chery and Brilliance.

"Futuris has a rapidly growing book of business that strengthens our position with West Coast customers, improves our utilization rates in North America and expands our business in Southeast Asia. In China, Futuris' concentration on local brands is complementary to our existing business," said Bruce McDonald, Adient chairman and chief executive officer. "We believe this transaction will create new value for our shareholders."

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 optimize operational efficiencies.

The transaction is expected to close by approximately September 30, 2017, pending regulatory and anti-trust approvals.

Adient will hold a conference call for financial analysts to discuss this transaction today at 11:30 Eastern. To participate by telephone, analysts should dial 800-779-1454 (U.S) or 1-312-470-7220 (international) 15 minutes prior to the start time of the call and ask to be connected to the Adient conference call. The conference passcode is ADIENT. A listen only webcast can be accessed through the investor section of Adient.com

About Adient:
Adient is a global leader in automotive seating. With 75,000 employees operating 230 manufacturing/assembly plants in 33 countries worldwide, we produce and deliver automotive seating for all vehicle classes and all major OEMs. From complete seating systems to individual components, our expertise spans every step of the automotive seat-making process. Our integrated, in-house skills allow us to take our products from research and design all the way to engineering and manufacturing – and into more than 25 million vehicles every year.

Cautionary Statement Regarding Forward-Looking Statements:
Adient plc has made statements in this document that are forward-looking and, therefore, are subject to risks and uncertainties. All statements in this document other than statements of historical fact are statements that are, or could be, deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In this document, statements regarding Adient's future financial position, sales, costs, earnings, cash flows, other measures of results of operations, capital expenditures or debt levels and plans, objectives, outlook, targets, guidance or goals are forward-looking statements. Words such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "should," "forecast," "project" or "plan" or terms of similar meaning are also generally intended to identify forward-looking statements. Adient cautions that these statements are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond Adient's control, that could cause Adient's actual results to differ materially from those expressed or implied by such forward-looking statements, including, among others, risks related to: Adient's ability to successfully complete the acquisition of Futuris on the announced terms and timetable (including as a result of delays in obtaining, or a failure to obtain, necessary regulatory approvals), the possibility that the expected synergies and value creation from the acquisition of Futuris will not be realized or will not be realized at expected levels or within the expected time period, the risk that Futuris will not be integrated successfully or within expected time periods, disruptions from the acquisition of Futuris making it more difficult to maintain business and operational relationships, the likelihood that consummation of the acquisition of Futuris will make it difficult for Adient to consummate other material and/or strategically advantageous acquisitions in the near term,the ability of Adient to meet debt service requirements, the availability and terms of financing, general economic and business conditions, the strength of the U.S. or other economies, automotive vehicle production levels, mix and schedules, energy and commodity prices, the availability of raw materials and component products, currency exchange rates, and cancellation of or changes to commercial arrangements. A detailed discussion of risks related to Adient's business is included in the section entitled "Risk Factors" in Adient's Annual Report on Form 10-K for the fiscal year ended September 30, 2016 filed with the SEC on November 29, 2016 and quarterly reports on Form 10-Q filed with the SEC, available at www.sec.gov. Potential investors and others should consider these factors in evaluating the forward-looking statements and should not place undue reliance on such statements. The forward-looking statements included in this document are made only as of the date of this document, unless otherwise specified, and, except as required by law, Adient assumes no obligation, and disclaims any obligation, to update such statements to reflect events or circumstances occurring after the date of this document. In addition, this document includes certain projections provided by Adient with respect to the anticipated future performance of Adient's businesses. Such projections reflect various assumptions of Adient's management concerning the future performance of Adient's businesses, which may or may not prove to be correct. The actual results may vary from the anticipated results and such variations may be material. Adient does not undertake any obligation to update the projections to reflect events or circumstances or changes in expectations after the date of this document or to reflect the occurrence of subsequent events. No representations or warranties are made as to the accuracy or reasonableness of such assumptions or the projections based thereon.

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SOURCE Adient

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