(Adds details on deal)
March 12 (Reuters) - Automotive seating company Adient said on Friday it would sell its 50% interest in Yanfeng Adient Seating (YFAS) to its joint venture partner for $1.5 billion in cash, to pursue its strategy in China independently.
In turn, Adient will acquire YFAS’ 50% equity interest in Chongqing Yanfeng Adient Automotive Components and 100% equity interest in Yanfeng Adient Seating and consolidate those businesses.
Adient Chief Executive Officer Doug Grosso said the deals would offer an opportunity “to drive our China strategy independently and further position the company for future growth in the world’s largest automotive market.”
Adient designs and manufactures seating systems for passenger cars, commercial vehicles and light trucks.
The company, which operates in 32 countries, expects its China business to have nearly $4.5 billion in annual consolidated and unconsolidated sales after it has closed all deals.
Yanfeng will operate the remainder of YFAS as a wholly owned enterprise.
Adient plans to use proceeds to pre-pay a portion of its debt, following closing of the deal, which is expected in the second half of 2021. (Reporting by Shreyasee Raj; Editing by Shailesh Kuber)