Japanese chemicals maker Asahi Kasei Corp. said Thursday it will buy U.S. automotive interior material supplier Sage Automotive Interiors Inc. for $1.06 billion including debt in a bid to bolster its auto business.
Asahi Kasei will buy from Clearlake Sage Holdings LLC the entire stake in the South Carolina-based company which has procured artificial leather for car seats from the Japanese company.
The Tokyo-based manufacturer sees growth potential in the car interior market, as the overall auto market is expected to grow in line with the development of advanced automotive technologies such as automated driving system.
The deal follows Asahi Kasei’s 2015 acquisition of Polypore International Inc., a U.S. maker of separators used in lithium-ion batteries for electric vehicles.
Established in 2009, Sage Automotive has production sites in the United States, Italy, Poland and Romania, Brazil and China. The company posted sales of $474.9 million in the calendar year 2017, up 14 percent from $415.6 million the previous year.