Lear To Acquire Leather Supplier Eagle Ottawa - Quick Facts

(RTTNews) - Lear Corporation (LEA) announced that it has signed a definitive agreement to acquire Eagle Ottawa, a supplier of automotive leather with a rich 150-year history and stable private ownership for nearly 50 years.

Commenting on Eagle Ottawa, Lear said it has an experienced management team, modern facilities, a low-cost footprint, diversified customers and a reputation for superior quality, product innovation and craftsmanship.

The transaction is valued at $850 million on a cash and debt free basis. Lear intends to fund the transaction through a combination of cash on hand and debt. The closing of the transaction is expected to occur in the first quarter of 2015 subject to customary conditions, including regulatory approvals. Lear expects the transaction to be approximately 5% accretive to annual earnings per share upon closing.

The company said the transaction is expected to deliver sales and operating synergies. By combining design, product development and manufacturing capabilities in leather, fabric and its cut-and-sew operations, Lear will be able to provide improved quality and craftsmanship, while reducing cost for its customers.