Sterling Heights-based mobility safety developer Key Safety Systems (KSS) today announced a definitive agreement to acquire substantially all of Tokyo-based seat belt and airbag supplier Takata Corp. for an aggregate purchase price of $1.6 billion.
The asset purchase agreement is consistent with the agreement announced by both companies last June, specifically omitting assets and operations related to Takata’s manufacturing and sale of phase-stabilized ammonium nitrate (PSAN) airbag inflators.
Takata’s PSAN-related operations will be run by the reorganized company following the transaction closing and will eventually be wound down. Takata will continue to produce airbag inflator replacements to meet demands without interruption.
“The acquisition of Takata fits perfectly with KSS’s century-long commitment to the automotive business,” says Yuxin Tang, president of KSS. “The combined company will enhance our ability to serve customers globally and provide superior products and innovation in the rapidly evolving auto safety industry. We enter this transaction in a spirit of partnership and anticipate executives and employees from both KSS and Takata together will play important roles — from initial integration through strategic execution.”
Takata has filed final forms of all definitive transaction documents in the U.S., including its Chapter 11 bankruptcy plan and certain restructuring support agreements, and a significant group of Takata’s OEM customers have committed to supporting the transaction.
The closing its subject to bankruptcy court approval in both Japan and the U.S., consenting OEM agreements and customer documentation, receipt of regulatory approvals, and other closing conditions. It is expected to close in the first quarter of 2018.