International Leather Maker (ILM)
reports that Lear Corp, the Tier-1 maker of auto seats and electrical power systems, is close to a deal to buy Eagle Ottawa LLC, one of the world’s leading automotive leather makers. The deal is said to be worth more than $800 million, the Wall Street Journal reported, citing sources familiar with the matter.
A deal for Eagle Ottawa, which is currently owned by Milwaukee-based investment firm Everett Smith Group, could be announced in the next couple of weeks, the report said. ILM first reported that the parent company were willing to sell the business on May 6.
Both Lear and Eagle Ottawa were not immediately available for comment to the WSJ. J.P. Morgan Chase & Co. and XMS Capital Partners are advising company’s parent, Everett Smith Group on the sale of Eagle Ottawa, according to sources.
Auburn Hills, Michigan-based Eagle Ottawa's leather products are used in car brands such as BMW, Buick, Honda, Volvo, Renault, Chrysler and Mercedes-Benz.
Southfield, Michigan-based Lear counts Ford, General Motors and BMW as its largest customers. The three companies represented 54% of Lear's sales in 2013.
Lear in 2006 expanded its leather operations with the introduction of its Aventino premium leather for seat ventilation and customisable fabric, the Journal reported.