Asahi Kasei to Acquire Sage Automotive Interiors

Asahi Kasei Corp. will acquire Sage Automotive Interiors, Inc., a U.S.-based manufacturer of automotive interior materials, for a cash transaction price of approximately US$700 million. An agreement regarding the acquisition was concluded between Asahi Kasei and Clearlake Sage Holdings, LLC, the 100% owner of Sage.

Asahi Kasei supplies its Lamous microfiber suede to Sage, and the two companies have a long-standing mutually beneficial business relationship. A leader in the development and manufacture of fabrics for automotive interiors, Sage holds the No. 1 global share for vehicle seat fabrics, and has established a strong presence among vehicle manufacturers and Tier-1 suppliers based on its comprehensive proposal capabilities, advanced design capabilities, and processing technology related to automotive interior materials.

Asahi Kasei considers 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-related market, contributing to the expansion of its automotive-related business.

The transaction price of approximately US$700 million will change depending on fluctuation of cash and debt balance, working capital, etc., at the time of closing. The total acquisition price including Sage’s net interest-bearing debt is US$1.06 billion.

With closing of the transaction, Sage will become a consolidated subsidiary of Asahi Kasei.