Exco Technologies has entered into a definitive agreement with Automotive Leather (ALC) to acquire all of its shares for $17.2m in cash.
The transaction is subject to receipt of applicable regulatory approvals and other customary closing conditions.
Amount for the transaction will be funded primarily through the use of its operating credit facility which will be increased to accommodate the cash payment amount.
The acquisition is expected to be complete in the second quarter of fiscal 2014.
Based in South Africa, ALC manufactures and exports of luxury leather interior trim components to the middle and luxury automotive sector.
It has acquired a large portion of the South African trim business of BMW in 2002. It supplies leather seat covers and other interior trim components to BMW and other German OEMs and their tiers.
