The global automotive technology leader in seating and e-systems, Lear Corporation, announced that it has entered into a definitive agreement to acquire substantially all of Kongsberg Automotive's Interior Comfort Systems (ICS) business unit.
Under the terms of the deal, Lear will acquire Kongsberg Automotive's ICS business unit for €175 million on a cash and debt-free basis. The transaction, subject to regulatory approvals and other customary closing conditions and adjustments, is expected to close in the first quarter of 2022. Market dependent, the acquisition will likely be funded through debt financing.
Kongsberg Automotive's ICS business unit specialises in comfort seating solutions, with a leadership position in seating product areas experiencing growth within the auto industry – massage, lumbar, seat heat and ventilation. With almost 50 years of experience, the ICS business unit has cutting-edge technology, a well-balanced customer portfolio built on longstanding relationships with leading premium automakers and an experienced and dedicated team.
The purchase of Kongsberg Automotive's ICS business unit will further advance Lear's vertical integration and expand product offerings into specialised comfort seating solutions that improve vehicle performance and packaging – important benefits as more customers demand these features across various vehicle segments.
Ray Scott, President and CEO, Lear, said, 'By integrating Kongsberg Automotive's Interior Comfort Systems business unit into our operations, we will build on our strengths in design, engineering and operational excellence – advancing our strategy to offer a complete suite of premier comfort seat systems to our customers and ultimately to consumers. This acquisition represents an opportunity for Lear to capture more content-per-vehicle by providing an optimised solution with a better value proposition for our customers, in terms of cost, quality and performance.'
'As automakers look for greater product differentiation, increased efficiency and improved performance, especially in the luxury, SUV and electric vehicle segments, Lear is integrating seating comfort with more features,' said Frank Orsini, Lear Executive Vice President and President, Seating. 'This acquisition complements our strategic portfolio of vertically integrated design solutions and comfort capabilities.'
Joerg Buchheim, President and CEO, Kongsberg Automotive, said, 'I am convinced our ICS employees will be in good hands and continue to thrive at a much larger scale at Lear, our longstanding partner. For Kongsberg Automotive, the transaction provides us the room for additional financial maneuvering and allows us to fully concentrate on our path towards highly-focused and profitable growth.'