Lear enters deal to purchase textile producer Guilford Mills

Article by Christian Andrei, on April 12, 2012

For an undisclosed figure, Lear Corp. had entered a deal to purchase specialty textile producer Guilford Mills from private equity firm Cerberus Capital Management. Lear said that Guilford, which produces fabrics for automotive and specialty markets, could reach sales of around $400 million each year. It’s likely that this transaction will be finalized in the second quarter of 2012.

In 2004, Guilford Mills was bought by Cerberus Capital Management, a New York-based private equity firm, for $107 million. In a statement, Matt Simoncini, Lear's president and CEO, said that acquiring Guilford is another step in Lear's strategy to reinforce its core businesses by raising its component capabilities.

This acquisition is expected to increase its global fabric design and development resources as well as give a boost to its technical expertise and add to its current seat trim capabilities in growing markets and fabric production in Asia. Headquartered in Wilmington, N.C., Guilford has been supplying fabrics to automakers and other industries for more than 40 years.

It specializes in fabric design, development, warping, knitting, dyeing, finishing and lamination. Lear claims that about 85% of Guilford's annual revenues come from automotive applications. The automotive division of Guilford makes fabrics for several automotive interior applications such as those for seat fabric. Several of this firm’s customers include BMW AG , Chrysler Group, Ford Motor Co., General Motors, Honda Motor Co., Nissan Motor Corp., Toyota Motor Corp., and Volkswagen AG. On Wednesday on the New York Stock Exchange, Lear’s shares closed at $43.98

Topics: lear

If you liked the article, share on:


Login or Create new account to add a comment!


Starting early 2017, the new Audi Q7 will be available with the new 2.0-liter TFSI four-cylinder engine that makes it not only faster but also lighter and more efficient than...
by - October 25, 2016
Soon, Fiat Chrysler’s Dodge brand will be ending the production of the Dodge Viper. So practically, the 2017 Dodge Viper will be the last Viper up for grabs. Gerry Wood...
by - October 25, 2016
Say hello to the fastest accelerating production car in the world: the new 2017 Tesla Model S P100D. Powered by a 100 kWh battery, this new model basically outruns almost...
by - October 25, 2016
Ever heard of the “Lynk & Co” automotive brand? Well, it is highly likely people haven’t. This is practically because this is new brand created by the joint venture between...
by - October 25, 2016
Mitsubishi is now officially part of the Renault-Nissan alliance after Nissan took over the Japanese car company recently. We know a lot has been happening in the car industry, but...
by - October 24, 2016