SOUTHFIELD, Michigan,
Feb. 6, 2017 /PRNewswire/
-- Lear Corporation (NYSE: LEA), a leading global supplier of
automotive seating and electrical systems, today announced that it
has signed a definitive agreement to acquire Grupo Antolin's automotive seating
business.
Grupo Antolin's seating business
is headquartered in France with
sales and operations concentrated in 5 countries in
Europe. Grupo Antolin's
seating business is comprised of just-in-time seat assembly, seat
structures & mechanisms and seat trim, and is well positioned
among the largest European automakers, including Peugeot Citroen,
Daimler, Renault Nissan and Volkswagen. Grupo Antolin's seating business has an
experienced management team, modern facilities and a reputation for
lean manufacturing, superior quality and innovation, including
high-functionality and light weight seat designs.
The transaction is valued at €286 million on a cash and debt
free basis. Lear intends to fund the transaction with cash on
hand. The closing of the transaction is expected to occur in
the first half of 2017 subject to customary conditions, including
regulatory approvals in Europe. Lear expects the transaction
to be accretive to 2017 earnings per share upon closing.
"The acquisition of Grupo
Antolin's seating business in Europe is another important step in
strengthening our core seating business by further diversifying our
global seating sales, expanding our seat component capabilities and
accelerating profitable sales growth," said Matt Simoncini, Lear's President and CEO. "This
transaction will further enhance Lear's position as a global leader
in automotive seating and will create significant value for our
shareholders."
Grupo Antolin's seating business
has annual sales of approximately €300 million and includes 12
manufacturing facilities, 2 technological centers and 2,273
full-time and contract employees.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements regarding anticipated financial results
and liquidity. The words "will," "may," "designed to,"
"outlook," "believes," "should," "anticipates," "plans," "expects,"
"intends," "estimates," "forecasts" and similar expressions
identify certain of these forward-looking statements. The Company
also may provide forward-looking statements in oral statements or
other written materials released to the public. All such
forward-looking statements contained or incorporated in this press
release or in any other public statements which address operating
performance, events or developments that the Company expects or
anticipates may occur in the future, including, without limitation,
statements related to business opportunities, awarded sales
contracts, sales backlog and ongoing commercial arrangements, or
statements expressing views about future operating results, are
forward-looking statements. Actual results may differ materially
from any or all forward-looking statements made by the
Company. Important factors, risks and uncertainties that may
cause actual results to differ materially from anticipated results
include, but are not limited to, general economic conditions in the
markets in which the Company operates, including changes in
interest rates or currency exchange rates; currency controls and
the ability to economically hedge currencies; the financial
condition and restructuring actions of the Company's customers and
suppliers; changes in actual industry vehicle production levels
from the Company's current estimates; fluctuations in the
production of vehicles or the loss of business with respect to, or
the lack of commercial success of, a vehicle model for which the
Company is a significant supplier; disruptions in the relationships
with the Company's suppliers; labor disputes involving the Company
or its significant customers or suppliers or that otherwise affect
the Company; the outcome of customer negotiations and the impact of
customer-imposed price reductions; the impact and timing of program
launch costs and the Company's management of new program launches;
the costs, timing and success of restructuring actions; increases
in the Company's warranty, product liability or recall costs; risks
associated with conducting business in foreign countries; the
impact of regulations on the Company's foreign operations; the
operational and financial success of the Company's joint ventures;
competitive conditions impacting the Company and its key customers
and suppliers; disruptions to the Company's information technology
systems, including those related to cybersecurity; the cost and
availability of raw materials, energy, commodities and product
components and the Company's ability to mitigate such costs; the
outcome of legal or regulatory proceedings to which the Company is
or may become a party; the impact of pending legislation and
regulations or changes in existing federal, state, local or foreign
laws or regulations; unanticipated changes in cash flow, including
the Company's ability to align its vendor payment terms with those
of its customers; limitations imposed by the Company's existing
indebtedness and the Company's ability to access capital markets on
commercially reasonable terms; impairment charges initiated by
adverse industry or market developments; the Company's ability to
execute its strategic objectives; changes in discount rates and the
actual return on pension assets; costs associated with compliance
with environmental laws and regulations; developments or assertions
by or against the Company relating to intellectual property rights;
the Company's ability to utilize its net operating loss, capital
loss and tax credit carryforwards; global sovereign fiscal matters
and creditworthiness, including potential defaults and the related
impacts on economic activity, including the possible effects on
credit markets, currency values, monetary unions, international
treaties and fiscal policies; the impact of potential changes in
tax and trade policies in the United
States and related actions by countries in which we do
business; the anticipated changes in economic and other
relationships between the United
Kingdom and the European Union; and other risks described in
the Company's Annual Report on Form 10-K for the year ended
December 31, 2015, as supplemented
and updated by the Company's Quarterly Report on Form 10-Q for the
quarter ended July 2, 2016, and its
other Securities and Exchange Commission filings. Future
operating results will be based on various factors, including
actual industry production volumes, commodity prices and the
Company's success in implementing its operating strategy.
Information in this press release relies on assumptions in the
Company's sales backlog. The Company's sales backlog reflects
anticipated net sales from formally awarded new programs less lost
and discontinued programs. The calculation of the sales
backlog does not reflect customer price reductions on existing or
newly awarded programs. The sales backlog may be impacted by
various assumptions embedded in the calculation, including vehicle
production levels on new programs, foreign exchange rates and the
timing of major program launches.
The forward-looking statements in this press release are made as
of the date hereof, and the Company does not assume any obligation
to update, amend or clarify them to reflect events, new information
or circumstances occurring after the date hereof.
About Lear Corporation
Lear Corporation (NYSE: LEA) was founded in Detroit in 1917 as American Metal
Products. In 2017, the Company will celebrate its
100th year anniversary. Lear is one of the world's
leading suppliers of automotive seating systems and electrical
distribution systems (E-Systems). Lear serves every major
automaker in the world, and Lear content can be found on more than
400 vehicle nameplates. Lear's world-class products are
designed, engineered and manufactured by a diverse team of
approximately 150,000 employees located in 37 countries. Lear
currently ranks #154 on the Fortune 500. Lear's headquarters
are in Southfield, Michigan.
Further information about Lear is available at http://www.lear.com
or follow us on Twitter @LearCorporation.
About Grupo Antolin's Seating
Business
Grupo Antolin's seating business
is well positioned among major European automakers, including
Peugeot Citroen, Daimler, Renault Nissan and Volkswagen. The
Company has annual sales of approximately €300 million; 12
manufacturing facilities (7 in Spain, 2 in France, 1 in the Czech Republic, 1 in Portugal and 1 in Morocco); 2 technological centers (in
France and Spain) and 2,273 full-time and contract
employees in 6 countries. Grupo
Antolin's seating business headquarters is located in
France.