Clearlake Capital Group agreed to sell Futuris Global Holdings, a seating and interiors supplier for the automotive industry, to an affiliate of Adient. The deal is expected to close by the end of September.
Clearlake Capital Group, L.P. (together with its affiliates, “Clearlake”) today announced a definitive agreement to sell Futuris Global Holdings LLC (“Futuris” or the “Company”) to an affiliate of Adient plc (NYSE: ADNT; “Adient”). The transaction is expected to close by the end of September 2017, subject to customary closing conditions and regulatory approvals.
Futuris is a leading supplier of seating solutions to the global automotive industry, with an active and rapidly growing presence in North America and Asia.
Under Clearlake’s ownership, Futuris executed a successful restructuring of its operations to transition from an Australian-focused supplier to a global operator with differentiated capabilities and profitable relationships with leading global automotive OEM customers. In addition, the Company successfully consummated the acquisitions of CNI Enterprises and Kongsberg Automotive’s North American headrest and armrest business. Working with Joe Gorga, Clearlake Operating Advisor, and Merv Dunn, Clearlake Operating Advisor and Futuris CEO, Clearlake implemented its Clearlake O.P.S.® (Operations, People, Strategy) framework to positively transform the Company’s business portfolio, financial profile, and business growth trajectory. These initiatives resulted in revenue growth of more than 60% during Clearlake’s ownership. Today, Futuris’ customers include Tesla, its largest customer, as well as FCA, Ford and General Motors, in addition to other automotive seating suppliers and Asian customers.
“Our original investment thesis four years ago was to transform Futuris into a leading global supplier in the automotive industry through operational initiatives, organic growth and acquisitions,” said José E. Feliciano, Managing Partner and Co-Founder, Clearlake. “We are very proud that, with the help of Merv and his management team, Clearlake was able to successfully improve operations, build out the leadership team and expand the business worldwide, consistent with our investment strategy.”
“Today’s announcement is an exciting accomplishment for Futuris and Clearlake, and reflects the value added to the Company during our ownership,” added Colin Leonard, Partner, Clearlake. “Futuris can now count the leading automotive companies in the world as customers, and we look forward to seeing the Company continue to grow in the future.”
“It has been a pleasure working with the Clearlake team, which provided us with the operational, strategic and financial expertise needed to grow the business. To be a better company, sometimes you have to partner with the best – and that is what we did here,” said Merv Dunn. “Adient is a market leader and we are excited to have been chosen by them based upon the fact that we have become a leader in the EV market and have shown significant growth in North America and Asia. This merger is a logical and exciting next step for Futuris and because of the inherent benefits that exist between two companies with like products and processes, the customers of Futuris will undoubtedly be provided with greater opportunities in the future, and that is what I call adding value.”
Deutsche Bank Securities and Lincoln International served as financial advisors to Futuris. Kirkland & Ellis LLP served as legal advisor to Futuris.
About Clearlake Capital
Clearlake Capital Group, L.P. is a leading private investment firm founded in 2006. With a sector-focused approach, the firm seeks to partner with world-class management teams by providing patient, long-term capital to dynamic businesses that can benefit from Clearlake’s operational improvement approach, O.P.S.®. The firm’s core target sectors are industrials and energy; software and technology-enabled services; and consumer. Clearlake currently has over $4 billion of assets under management and its senior investment principals have led or co-led over 90 investments. More information is available at www.clearlake.com.
Futuris is a leading automotive Tier 1 global JIT seating and interiors supplier with complete design and development to production capabilities. Futuris is located across five countries, the United States, Mexico, China, Thailand and Australia, operating over 25 facilities and employing over 5,600 associates worldwide. For more information, please visit futurisgroup.com.