Adient plc (NYSE: ADNT) is acquiring Futuris Global Holdings LLC, a manufacturer of automotive seats, for $360 million from lower middle-market private equity firm Clearlake Capital Group.
Futuris designs and distributes a range of seating and interior materials for the transportation industry. The Oak Park, Michigan-based target supplies the auto manufacturing sector with seating systems, seat hardware, carpet systems, steering assemblies, pedal box modules, window regulators, and other automotive mechanisms. Futuris, under Clearlake’s ownership, completed the acquisitions of CNI Enterprises and the U.S. headrest and armrest business of Kongsberg Automotive. Tesla Inc. (Nasdaq: TSLA), Fiat Chrysler Automobiles (NYSE: FCAU), Ford Motor Co. (NYSE: F) and General Motors (NYSE: GM) are among the targets list of customers.
"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," states Adient CEO Bruce McDonald. "In China, Futuris' concentration on local brands is complementary to our existing business."
Based in Plymouth, Michigan, Adient also supplies seating materials for various vehicles and original equipment manufacturers. The Plymouth, Michigan-based buyer has approximately 230 manufacturing plants across 33 countries. Adient intends to benefit from"substantial synergies through vertical integration, purchasing and logistics improvements."
Headquartered in Santa Monica, California, Clearlake is a PE firm with more than $4 billion in assets under management. The firm was founded in 2006 and targets the industrials and energy, communications, software, consumer and technology-enabled services sectors.
Clearlake has remained active in the middle market. The PE firm has previously bought legal software provider NetDocuments, and purchased network security provider Landesk. In 2016, the PE firm purchased data protection software provider Vision Solutions Inc. from Thoma Bravo LLC; backed Syncsort, a data integration software developer; and acquired a stake in snacks company That’s How We Roll LLC. Clearlake sold Syncsort and Vision Solutions to Centerbridge Partners for $1.26 billion in July 2017. Deutsche Bank Securities (NYSE: DB) and Lincoln International LLC is serving as financial advisers to Futuris. Kirkland & Ellis LLP is acting as legal adviser to both Futuris and Clearlake.