The Auto Channel
The Largest Independent Automotive Research Resource
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

Lear Corporation Sells Sealants and Foam Rubber Business

16 June 2000

Lear Corporation Sells Sealants and Foam Rubber Business

    SOUTHFIELD, Mich. - Lear Corporation today announced the sale of its 
sealants and foam rubber business to AcoustiSeal, a subsidiary of GSC Industries, 
Inc., for $92.5 million.  Lear will use the net cash proceeds from the sale to 
repurchase its common stock and repay debt.

    Lear acquired the sealants and foam rubber operations through its
acquisitions of United Technologies Automotive in 1999 and Masland Industries
in 1996.  The agreement includes a sales and engineering office in Troy, Mich.
and two production facilities, one located in Kansas City and another in St.
Louis, Mo., which employ a combined workforce of approximately 600.  The
plants manufacture and fabricate foam rubber, vibration damping materials and
body structure sealing materials, with annual sales of approximately $100
million.

    "Since sealants and foam rubber are non-core products, the sale is in line
with our strategy to divest such assets and use the proceeds to support our
ongoing efforts to maximize shareholder value," said Kenneth L. Way, Lear
Chairman and Chief Executive Officer.  "The sale demonstrates our commitment
to the interior and electronic systems strategy, which is instrumental in our
role as the premier automotive interiors integrator serving light vehicle
manufacturers worldwide."

    GSC Industries, Inc. is an Indianapolis, Ind.-based minority supplier of
automotive precision steel components to the North American automotive
industry with 1999 sales of $25 million.

    Lear Corporation, a Fortune 150 company headquartered in Southfield,
Mich., is one of the world's largest automotive suppliers, with 1999 sales of
$12.4 billion.  The company's world-class products are designed, engineered
and manufactured by more than 120,000 employees in over 300 facilities located
in 33 countries.