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Automotive is currently realigning its business priorities. The ICS business
unit supplies seat climate and comfort systems to all major car and seat
manufacturers.
Lear, a well-respected leader in the automotive industry has been a highly
valued business partner of Kongsberg Automotive for many years. The two
companies entered into a master sale agreement on October 28, 2021. With this
transaction, approximately 3,800 Kongsberg Automotive employees from Asia,
Europe and North America will be integrated into Lear.
Under the terms of the transaction, Lear will acquire Kongsberg Automotive’s ICS
business unit for an Enterprise Value of EUR 175 million. The transaction,
subject to regulatory approvals and other customary closing conditions and
adjustments, is expected to close in the first quarter of 2022.
After careful consideration, President & CEO Joerg Buchheim, the Global
Leadership Team, and the Board of Directors have concluded that the sale of the
ICS business unit is the right step for Kongsberg Automotive to take. Kongsberg
Automotive intends to focus on Couplings, Fluid Transfer Systems, Powertrain &
Chassis, and Off-Highway, strengthening and maintaining its competitiveness and
future position of profitability, cash flow and growth.
Selling the ICS business unit is a part of the transformational “Shift Gear”
program at Kongsberg Automotive. It seeks to improve performance, optimize and
future-proof the product portfolio as well as enable improved sustainability at
Kongsberg Automotive and its customers.
The ICS business unit, along with the Light-Duty Cables (“LDC”) business unit
belongs to Kongsberg Automotive’s Interior business segment. The divestment of
LDC business unit was also announced earlier today.
(https://www.kongsbergautomotive.com/media-news/press-releases/2021/kongsberg
-automotive-to-divest-its-ldc-business-unit-to-suprajit-engineering-limited/)
Joerg Buchheim, Kongsberg Automotive’s President & CEO, comments: “Our portfolio
decisions are driven by the clear strategy to build on leading market positions
in the business areas in which Kongsberg Automotive participates. Going forward,
we can fully concentrate our highly valuable resources on activities we excel
at. Proceeds from the sale, besides strengthening the balance sheet further,
provide more latitude for the business to focus on profitable growth with strong
product focus plus attractive innovations.”
“By integrating Kongsberg Automotive’s Interior Comfort Systems business unit
into our operations, we will build upon 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,” says
Ray Scott, Lear President and CEO. “This acquisition represents an opportunity
for Lear to capture more content-per-vehicle by providing an optimized solution
with a better value proposition for our customers, in terms of cost, quality and
performance. Lear looks forward to welcoming the talented ICS workforce to our
team.”
We invite you to Kongsberg Automotive’s media and investors presentation at
10:30 CET on Friday, October 29, 2021, where we will also answer questions on
the sale of the LDC and ICS business units. Conference call registration is
available at:
Kongsberg Automotive Announcements - 1509913
About Kongsberg Automotive ASA
Kongsberg Automotive provides world class products to the global vehicle
industry. Our products enhance the driving experience, making it safer, more
comfortable and sustainable. With approximately 11,000 employees in 19
countries, Kongsberg Automotive is truly a global supplier. The company has more
than 27 production facilities worldwide. The product portfolio includes seat
comfort systems, driver and motion control systems, fluid assemblies, and
industrial driver interface products developed for global vehicle manufacturers.
Find more information at www.kongsbergautomotive.com.
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 betterT 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 (https://www.lear.com/) or on
Twitter @LearCorporation (https://twitter.com/learcorporation).
Rothschild & Co acted as financial adviser and Squire Patton Boggs acted as
legal adviser to Kongsberg Automotive.
For further information, please contact:
Media contact:
Kongsberg Automotive
Therese Sjoborg Skurdal
therese.skurdal@ka-group.com
+47 982 14 059
Lear Corporation:
Katya Pruett
kpruett@lear.com
+1 248-447-1646
The information in this announcement is considered inside information pursuant
to the EU Market Abuse Regulation and is subject to the disclosure requirements
pursuant section 5-12 of the Norwegian Securities Trading Act. This announcement
was published by Kongsberg Automotive’s investor relations contact as set out
above.
Forward-looking statements
This announcement contain forward-looking statements. Forward-looking statements
are statements that are not historical facts and may be identified by words such
as “believe”, “expect”, “anticipate”, “strategy”, “intends”, “estimate”, “will”,
“may”, “should” and similar expressions. The forward-looking statements in this
announcement are based upon various assumptions, which in turn may be based on
further assumptions. Although Kongsberg Automotive believes that these
assumptions were reasonable when made, these assumptions are inherently subject
to significant known and unknown risks, uncertainties, contingencies and other
important factors that are difficult or impossible to predict and are beyond its
control. Various factors could cause Kongsberg Automotive’s actual results to
differ materially from those projected in a forward-looking statement. No
assurances can be given that the assumptions underlying the forward-looking
statements prove to have been correct. Kongsberg Automotive disclaims any
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
Kilde
