KONGSBERG AUTOMOTIVE TAKES MOMENTOUS STEP INTO THE FUTURE DIVESTMENT OF THE INTERIOR COMFORT SYSTEMS BUSINESS UNIT
Zurich, October 28, 2021: Kongsberg Automotive ASA (“Kongsberg Automotive”) has entered into an agreement for the sale of substantially all of the Interior Comfort Systems (“ICS”) business unit to Lear Corporation (“Lear”), as Kongsberg 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.
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: https://globalmeet.webcasts.com/starthere.jsp?ei=1509913&tp_key=b33514f0f5
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 better™ 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 or on Twitter @LearCorporation.
Rothschild & Co acted as financial adviser and Squire Patton Boggs acted as legal adviser to Kongsberg Automotive.
For further information, please contact:
Therese Sjoborg Skurdal
+47 982 14 059
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.
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.
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