Supplier Adient to end tie-up with China’s Yanfeng in $1.5 billion deal

Automotive seating supplier Adient mentioned Friday it would sell its fifty {7e488363c11ee5ef50445c8c4fa770b6e6e4f99e57faea264a05ac52abb3ffe0} fascination in Yanfeng Adient Seating to its joint undertaking lover for $1.5 billion in money, to pursue its system in China independently.

In switch, Adient will acquire YFAS’ fifty {7e488363c11ee5ef50445c8c4fa770b6e6e4f99e57faea264a05ac52abb3ffe0} equity fascination in Chongqing Yanfeng Adient Automotive Parts and one hundred {7e488363c11ee5ef50445c8c4fa770b6e6e4f99e57faea264a05ac52abb3ffe0} equity fascination in Yanfeng Adient Seating and consolidate these enterprises.

Adient CEO Doug Del Grosso mentioned in a statement the discounts would offer an prospect “to generate our China system independently and even more posture the company for future advancement in the world’s premier automotive industry.”

Adient designs and manufactures seating techniques for passenger cars, commercial vehicles and light-weight trucks.

The company, which operates in 32 international locations, expects its China business to have almost $4.5 billion in annual consolidated and unconsolidated revenue right after it has closed all discounts.

Yanfeng will run the remainder of YFAS as a wholly owned company.

Adient ideas to use proceeds to prepay a part of its credit card debt, following closing of the deal, which is expected in the next fifty percent of 2021.

Adient, of Plymouth, Mich., ranks No. 12 on the Automotive News list of the top rated one hundred world-wide suppliers, with 2019 revenue to automakers of $sixteen.5 billion.