Lear Finalizes Deal to Buy Eagle Ottawa

Seatmaker Lear Corp. has agreed to buy automotive leather supplier Eagle Ottawa LLC for $850 million. The companies expect to complete the deal in the first quarter of 2015.

Lear has for months been signaling an interest in expanding its seating capabilities. With annual sales of $1 billion, Eagle Ottawa is the world's largest supplier of automotive leather. Both companies are headquartered in metropolitan Detroit.

Lear expects the purchase to boost its earnings about 5%. The company intends to fund the acquisition with an unspecified combination of cash and debt.