Credit: Shutterstock photoLear Corp.LEA announced that it will open a new automotive plant in Gostivar, Macedonia, this summer. This is Lear's first facility in Macedonia. The plant will employ around 300 people and will be used for the production of seat covers. The facility will lay emphasis on leather and fabric cutting, and sewing capabilities.
Lear currently serves all major automotive manufacturers across the world. The company is expected to continue with its expansion plans in the future.
Lear became the largest global supplier of premium automotive leather with the acquisition of Eagle Ottawa in Jan 2015. It paid $850 million for the deal, on a cash and debt-free basis. The company financed the deal by raising debt, apart from using its cash on hand.
Auburn Hills, MI-based Eagle Ottawa was earlier owned by Milwaukee-based investment firm, Everett Smith Group Ltd. Its customers include many major automakers such as BMW, Chrysler, Ford Motor Co. F , General Motors Company GM , Honda Motor Co., Ltd. HMC , Hyundai and Jaguar Land Rover, among others.
The acquisition of Eagle Ottawa complements Lear's seating business in addition to increasing its premium leather capabilities. It will diversify the company's customer mix and enable it to provide significantly customized products. Further, it will provide sales and operating synergies to Lear, and help improve the quality of products while simultaneously reducing prices.
Currently, Lear carries a Zacks Rank #2 (Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
