Asahi Kasei Acquires Sage Automotive Interiors
Expansion of Business in the Automotive Field
Under its Cs for Tomorrow 2018 medium-term strategic initiative, Asahi Kasei is focused on expanding automotive-related business as a priority in the Material sector. The company is currently working across the sector to strengthen relationships with vehicle manufacturers and their suppliers while expanding operations globally.
Asahi Kasei supplies Lamous microfiber suede to Sage, and the two companies have a long-standing mutually beneficial business relationship.
Asahi Kasei considered complementing its business portfolio with Sage’s business to be an effective means of accelerating its expansion in the automotive field. Last October the two companies began talks that led to the agreement for Asahi Kasei’s acquisition of Sage.
Asahi Kasei believes the acquisition will strengthen its position in the growing automotive interior material market, contributing to the overall expansion of its automotive-related business.
The transaction price of approximately USD 700 million will change depending on the fluctuation of cash and debt balance, working capital, etc., at the time of closing. The total acquisition price including Sage’s interest-bearing debt is approximately USD 1.06 billion. Closing of the transaction is conditional upon performing the required procedures in accordance with each relevant country’s antitrust regulations and obtaining approval from the relevant authorities. The process will be advanced as quickly as possible, and an announcement will be made upon completion.
With closing of the transaction, Sage will become a consolidated subsidiary of Asahi Kasei. The impact on financial performance will be disclosed without delay as necessary.
Asahi Kasei Europe GmbH
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