Lear Completes Acquisition of Kongsberg Automotive's Interior Comfort Systems Business Unit

Rhea-AI Summary

Lear Corporation (NYSE: LEA) has completed the acquisition of Kongsberg Automotive's Interior Comfort Systems (ICS) for €175 million ($198 million). This move enhances Lear's seating capabilities and expands its offerings in thermal and comfort solutions like seat heating, ventilation, and massage features. The ICS unit contributes about 3,800 employees across multiple facilities and is anticipated to generate approximately $200 million in revenue in 2022. This strategic acquisition aligns with the growing demand for advanced vehicle comfort technologies in luxury and electric vehicles.

Positive

• Acquisition of Kongsberg Automotive's ICS enhances Lear's seat component capabilities.
• Expansion into thermal and comfort seating solutions meets increasing market demand.
• ICS expected to generate approximately $200 million in revenue in 2022.

Negative

• Acquisition cost of €175 million ($198 million) raises concerns about debt financing.

SOUTHFIELD, Mich., Feb. 28, 2022 /PRNewswire/ -- February 28, 2022 /PRNewswire/ – Lear Corporation (NYSE: LEA), a global automotive technology leader in Seating and E-Systems, today announced it has completed the acquisition of substantially all of Kongsberg Automotive's Interior Comfort Systems (ICS) business unit. The acquisition will further advance Lear's seat component capabilities and expand product offerings in increasingly popular thermal and comfort seating solutions, such as seat heating and ventilation, and massage and lumbar support.

"Lear is leading an era of unprecedented evolution and growth in automotive seating innovation. As automakers look for greater product differentiation, increased efficiency and improved performance – especially in the luxury, SUV and electric vehicle segments – Lear is offering seating with more integrated thermal and premium features," said Ray Scott, Lear President and CEO. "We are excited to welcome the ICS team to Lear. With a well-earned reputation for talent and experience, the team is a valuable addition to the Lear family."

As previously announced, Lear acquired the ICS business unit for €175 million ($198 million), on a cash and debt-free basis, funded through debt financing completed in fourth quarter 2021. The ICS business unit brings operational leadership personnel and more than 3,800 employees working in four production facilities and four technical centers on three continents. It is expected to generate revenue of approximately $200 million this year.

"Personal transportation is continuing to change with advancing electric vehicle and autonomous driving technologies, and consumers placing a higher emphasis on interior comfort. A perfect complement to our product portfolio, the strategic acquisition of ICS will help us bring new technologies and a complete suite of thermal comfort systems to our customers, allowing us to drive emerging market trends and capture more content per vehicle," said Frank Orsini, Lear Executive Vice President and President, Seating. "With a shared track record of safety, world-class quality and innovation, operational excellence and an unwavering commitment to exceeding customer expectations, we are pleased to welcome the ICS team to Lear."

About Lear Corporation
Lear, a global automotive technology leader in Seating and E-Systems, enables superior in-vehicle experiences for consumers around the world. Lear's diverse team of talented employees in 38 countries is driven by a commitment to innovation, operational excellence, and sustainability. Lear is Making every drive better™ by providing the technology for safer, smarter, and more comfortable journeys. Lear, headquartered in Southfield, Michigan, serves every major automaker in the world and ranks 179 on the Fortune 500. Further information about Lear is available at lear.com or on Twitter @LearCorporation.

About Kongsberg Automotive ASA
Kongsberg Automotive provides cutting-edge technology to the global vehicle industry. We drive the global transition to sustainable mobility by putting engineering, sustainability, and innovation into practice. With approximately 11,000 employees in 19 countries, Kongsberg Automotive is truly an international supplier of automotive technology. The company has more than 27 production facilities worldwide. Our product portfolio includes driver and motion control systems, fluid assemblies, and industrial driver interface products.  Find more information at: kongsbergautomotive.com

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SOURCE Lear Corporation

FAQ

What is Lear Corporation acquiring from Kongsberg Automotive?

Lear Corporation is acquiring Kongsberg Automotive's Interior Comfort Systems business unit.

How much did Lear pay for Kongsberg Automotive's ICS business?

Lear acquired the ICS business for €175 million ($198 million).

What is the expected revenue impact of the ICS acquisition for Lear?

The ICS business unit is expected to generate approximately $200 million in revenue in 2022.

Why is the acquisition of Kongsberg's ICS unit significant for Lear?

The acquisition allows Lear to enhance its seating product offerings and meet increasing consumer demand for vehicle comfort technologies.