WL Ross and Lear Form Partnership to Explore Acqui
Southfield MI, October 17, 2005--WL Ross & Co. LLC and Lear Corp. said they have signed a framework agreement providing for a joint venture relationship to explore strategic acquisition opportunities in the automotive interior components sector.
"This proposed joint venture with Lear provides a solid platform for building a leading, global automotive interior components supplier. We see many opportunities to improve the operating fundamentals and profitably grow this business through acquisitions and restructuring actions," said Wilbur L. Ross Jr., WL Ross & Co. LLC chairman and CEO.
Among the opportunities the partners intend the proposed joint venture to explore is acquisition of all or a portion of Collins & Aikman Corporation. Franklin Mutual Advisers, LLC, (FMA), which is also a party to the framework agreement, has agreed to co-invest in the proposed joint venture with WLR.
The proposed joint venture would involve Lear's Interior Systems business segment, but not its seating and electrical & electronics businesses. WLR would contribute capital to fund acquisitions. Establishment of the joint venture entity is subject to the negotiation and execution of a definitive joint venture agreement between the parties.
"The market for interior component products is severely distressed and we have indicated that we are actively engaged in finding a better solution for our customers and our shareholders," said Bob Rossiter, Lear chairman and chief executive officer. "With the support of our customers, the proposed joint venture provides the best near and long-term opportunity to achieve a viable business model for this product segment, while also offering significant opportunities to participate in the ongoing restructuring and consolidation of the automotive supply industry."
