Subject to certain adjustments at closing, Sterling Heights, Mich.-based Key Safety Systems (KSS) — a division of China-based Ningbo Joyson Electronic Corp. — will acquire substantially all of the assets of Japan-based automotive safety systems supplier Takata Corp. for $1.588 billion.
Takata’s Kernersville, N.C.-based high-performance and composites manufacturer Highland Industries Inc. is included in the transaction and will become part of KSS. Not included in the deal are certain Takata assets and operations related to the production and sale of phase-stabilized ammonium nitrate airbag inflators.
KSS has completed due diligence and additional details about the deal — including plans for a smooth transition to minimize risk and supply chain disruption for Takata’s OEM customers — will be available in the coming weeks.
With the acquisition, KSS will employ approximately 60,000 employees in 23 countries.
“KSS is the ideal sponsor as we address the costs related to airbag inflator recalls, and an optimal partner to the company’s customers, suppliers and employees,” said Shigehisa Takada, chairman & CEO, Takata. “The combined business would be well positioned for long-term success in the global automotive industry. Throughout this process, our top priorities have been providing a steady supply of products to our valued customers, including replacement parts for recalls, and a stable home for our exceptional employees. This agreement would allow that to continue.”
“Although Takata has been impacted by the global airbag recall, the underlying strength of its skilled employee base, geographic reach, and exceptional steering wheels, seat belts and other safety products have not diminished,” said Jason Luo, president and CEO, KSS.