Auto parts company to change hands
The Swiss auto parts maker Kongsberg Automotive (KA) has agreed to sell its interior comfort systems (I …
Swiss auto parts maker Kongsberg Automotive (KA) has agreed to sell its Interior Comfort Systems (ICS) business unit to Lear Corporation.
Worth € 175 million, the deal is expected to close early next year and will see 3,800 employees from sites in Asia, Europe and North America join Lear Corporation.
KA completed the sale as part of a plan to refocus its resources on its core activities. Lear Corporation, headquartered in Detroit, manufactures car seats and electronics.
Kongsberg Automotive was advised on the case by lawyers for international firm Squire Patton Boggs.
Chairman of the firm’s corporate practice in Europe, Middle East and Africa, Tony Reed, based in Paris, led the team, with support from partner Dan Hassett and his colleagues in Europe, from Asia and the United States. In a statement, Reed described the transaction as “a complex international sale of strategic importance to our client.”
KA President and CEO Joerg Buchheim said: “Our portfolio decisions are driven by the clear strategy of building on leading market positions in the business areas in which Kongsberg Automotive is involved. Going forward, we can fully focus our very valuable resources on the businesses in which we are good at. The proceeds from the sale, in addition to further strengthening the balance sheet, give the company more leeway to focus on profitable growth with a strong product focus and compelling innovations.
His Lear counterpart, Ray Scott, added, “This acquisition represents an opportunity for Lear to capture more content per vehicle by delivering an optimized solution with a better value proposition for our customers, in terms of cost, quality and value. performance. Lear looks forward to welcoming the talented ICS workforce to our team.