Report: Lear May Buy Automotive Leather Maker For $800 Million
Lear (NYSE: LEA) edged down in late-day trading on a report it will buy automotive leather maker Eagle Ottawa LLC for about $800 million.
A deal could be announced this week or next, according to a report Tuesday afternoon in The Wall Street Journal that cited unnamed sources.
Lear, which makes seating for automakers, reportedly said in 2013 that it expected to expand its leather operations within the next two years.
Southfield, Michigan-based Lear is both a competitor and major customer for Eagle Ottawa, whose products are included in more than 100 vehicles models, including 2008 models Chevrolet Malibu, Cadillac CTS, Honda Accord and the BMW 3-Series.
Privately held Eagle is owned by the investment firm Everett Smith Group Ltd.
Lear closed Tuesday at $98.20, down 0.2 percent.
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.