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19th July 2018, Düsseldorf

Asahi Kasei to acquire Sage Automotive Interiors

The company is making a strategic expansion of business in the automotive field. Asahi Kasei has decided to acquire Sage Automotive Interiors, a US-based manufacturer of automotive interior material, for around US$ 700 million. An agreement regarding the acquisition was concluded between Asahi Kasei and Clearlake Sage Holdings, the full owner of Sage.

Under its Cs for Tomorrow 2018 medium-term strategic initiative, Asahi Kasei is focused on expanding automotive-related business as a priority in the material sector. The company is currently working across the sector to strengthen relationships with vehicle manufacturers and their suppliers while expanding operations globally.

The automotive industry is in a period of transformation referred to as CASE, indicating trends toward connected, autonomous, shared, and electric vehicles, the company explains. Such new trends create significant growth opportunities, including demand for vehicle interiors with greater comfort and innovative design. The market for automotive interior material is thus expected to continue expanding over the longer term.

Asahi Kasei supplies Lamous microfibre suede to Sage, and the two companies have a long-standing mutually beneficial business relationship. A leader in the development and manufacture of material for automotive interiors, Sage holds the No. 1 global share for vehicle seat fabric. Sage has established a strong presence among vehicle manufacturers and their suppliers based on its comprehensive proposal capabilities, advanced design capabilities, and processing technology related to automotive interior material.

Asahi Kasei considered complementing its business portfolio with Sage’s business to be an effective means of accelerating its expansion in the automotive field. Last October the two companies began talks that led to the agreement for Asahi Kasei’s acquisition of Sage.

Asahi Kasei believes the acquisition will strengthen its position in the growing automotive interior material market, contributing to the overall expansion of its automotive-related business. Expected effects of the acquisition include enhanced access to vehicle manufacturers and their suppliers, in order to swiftly and accurately ascertain trends and needs in the automotive industry, as well as proposal and provision of comprehensive vehicle interior designs and solutions leveraging Sage’s design and marketing capabilities in combination with various Asahi Kasei products such as fibres, plastics, and sensors.

With closing of the transaction, Sage will become a consolidated subsidiary of Asahi Kasei.

www.asahi-kasei.eu

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