May 28, 2023

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Adient announces closing of previously announced transactions | Automotive Industry News

Adient has closed the transactions contemplated by its previously introduced definitive arrangement with joint venture spouse, Yanfeng Automotive Trim Systems to make certain modifications to their current joint venture associations entered into on 31 January and amended on 24 June this calendar year.

At closing, Adient obtained money proceeds of US$309m relevant to the sale of Adient’s thirty% possession stake in Yanfeng International Automotive Interior Systems (YFAI) to Yanfeng and all around US$20m related to the sale of certain mechanisms business patents and other intellectual house to Adient Yanfeng Seating Mechanisms (AYM). 

In addition to the US$309m paid at the closing for its thirty% possession stake in YFAI, Adient is entitled to get an added US$60m for the sale of these types of stake, payable on a deferred basis. 

With regard to just about every YFAI fiscal calendar year ending right after the closing, beginning with the calendar year ending 31 December, 2020, Adient will be paid an earnout in an amount equal to thirty% of YFAI’s distributable earnings for these types of calendar year, until eventually these types of time as the US$60m deferred order price is absolutely paid.

Also, Adient and Yanfeng prolonged the phrase of Yanfeng Adient Seating’s (YFAS) joint venture arrangement to December, 2038.