Adient, a leading manufacturer and supplier of automotive seating systems, recently announced that it has entered into an agreement to sell its fabrics business to Sage Automotive Interiors. This move is part of Adient`s ongoing restructuring efforts to focus on its core automotive seating business.
The fabrics business of Adient produces high-quality materials for automotive interiors, including seat fabric, headliners, and door panels. The sale to Sage Automotive Interiors, a leading provider of innovative automotive interior materials, is expected to enhance the capabilities of both companies and create a stronger offering for customers.
“We are proud of the strong reputation our fabrics business has built over the years and believe that Sage Automotive Interiors is the right partner to take it to the next level,” said Doug Del Grosso, CEO of Adient. “This sale will enable us to focus even more on our core seating business while strengthening our balance sheet.”
While the financial terms of the transaction have not been disclosed, the sale is expected to close in the second quarter of 2021, pending regulatory approval.
For Adient, this announcement follows a series of strategic initiatives aimed at improving its financial performance. In 2020, the company announced plans to reduce its workforce and close several facilities to streamline operations and reduce costs.
Despite the challenges presented by the COVID-19 pandemic, Adient remains committed to its long-term strategy of delivering innovative, sustainable, and high-quality seating solutions to its customers.
As the automotive industry continues to evolve, companies like Adient must adapt and focus on their core competencies to remain competitive and meet the changing needs of customers. With this sale, Adient has taken an important step towards achieving that goal.