DETROIT -- Seating and electronics supplier Lear Corp. closed Monday on its acquisition of automotive leather supplier Eagle Ottawa LLC.
Lear announced the $850 million deal, financed through cash on hand and debt assumption, in August 2014.
Nearly half of the cars on U.S. roadways contain leather supplied by Eagle Ottawa. It generated nearly $1 billion in revenue in 2014, up from $485 million in 2011. Lear and Eagle Ottawa are both based in the Detroit area.
Last month, Eagle Ottawa announced it would spend $10 million to expand its technical center in Rochester Hills.
The project includes a 16,500-square-foot expansion of its facility at 2930 W. Auburn Road, with new workspace for 50 new employees, new prototyping and validation capabilities, and new space for its customers.
Eagle Ottawa, the largest leather supplier for auto seats in the world, has spent more than $75 million since 2011 on design, r&d and marketing.
Lear forecasts the transaction to be accretive by 5 percent in 2015 -- meaning the earnings per share are estimated to be 5 percent higher than the Eagle Ottawa transaction price.
Lear said it will announce its 2015 forecast, including projections for Eagle Ottawa, at next week’s Detroit auto show.