SOUTHFIELD – Lear Corporation Wednesday announced that it has signed a definitive agreement to acquire Eagle Ottawa, the world’s largest supplier of automotive leather for $850 million on a cash and debt free basis.
Eagle Ottawa has an experienced management team, modern facilities, a low-cost footprint, diversified customers and a reputation for superior quality, product innovation and craftsmanship. Eagle Ottawa will complement Lear’s leading position in luxury and performance automotive seating. Lear intends to fund the transaction through a combination of cash on hand and debt. The closing of the transaction is expected to occur in the first quarter of 2015 subject to customary conditions, including regulatory approvals. Lear expects the transaction to be approximately 5 percent accretive to annual earnings per share upon closing.
“The acquisition of Eagle Ottawa is another important step in strengthening our core seating business, expanding our 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. Eagle Ottawa adds global leather design and development resources as well as technical expertise to our existing surface materials capabilities. Eagle Ottawa will also enhance the level of craftsmanship and design options that we are able to provide to our customers and increase opportunities for sales growth and diversification.”
Eagle Ottawa is the largest global supplier of automotive leather, with annual sales of approximately $1 billion. Eagle Ottawa has a balanced geographic customer mix, with an industry leading position in North America and Asia and also a top supplier position in Europe. Eagle Ottawa has strong relationships with virtually all of the major global automakers, including BMW, Daimler, Fiat Chrysler, Ford, General Motors, Honda, Hyundai, Jaguar Land Rover, Mazda, Renault/Nissan and Toyota.
