Asahi Kasei has decided to takeover Sage Automotive Interiors, Inc., a US-based manufacturer of the automotive interior material, for a cash transaction price of approximately $700 million (¥79.1 billion). Asahi Kasei and Clearlake Sage Holdings, LLC, the 100% owner of Sage have signed an agreement for the takeover.
Asahi Kasei is focusing on expanding the automotive-related business to strengthen relationships with vehicle manufacturers and their suppliers while expanding operations globally as the market for the interior material is continuously growing. Asahi Kasei and Sage have a long-standing business relationship. Asahi Kasei supplies Lamous microfiber suede to Sage.
Sage, founded in 2009 and located in Greenville, South Carolina USA is a leader in the development and manufacture of material for automotive interiors and holds No. 1 global share for vehicle seat fabric. Sage has an established image among vehicle manufacturers and their suppliers due to its capabilities in making a comprehensive proposal, advanced design capabilities, and processing technology related to the automotive interior material.
Its operations include development, manufacturing, and sale of fabrics as automotive interior materials. With a paid-in capital of $82.5 million (consolidated, as of December 31, 2017), Sage has production facilities in United States, Italy, Poland, Romania, Brazil, and China. Woven and knitted fabric for vehicle seats (not including natural and synthetic leather).
The takeover of Sage’s business by Asahi Kasei is going to accelerate its expansion in the automotive field and will strengthen its position in the growing automotive interior material market, contributing to the overall expansion of its automotive-related business. The expected effects of the acquisition include enhanced access to vehicle manufacturers and their suppliers, comprehensive vehicle interior designs, and solutions leveraging Sage’s design and marketing capabilities.