Key Safety Systems (KSS), headquartered in Sterling Heights, Michigan, USA, and Takata, a supplier of automotive safety systems such as seatbelts, airbags and child seats, have reached an agreement in principle to sponsor a restructuring plan for the purchase of substantially all of Takata’s global assets and operations by KSS for an aggregate purchase price of US$1.6bn, subject to certain adjustments at closing.
Under the agreement, KSS will acquire substantially all of Takata’s assets, except for certain assets and operations that relate to Takata’s manufacturing and sale of phase-stabilised ammonium nitrate (PSAN) airbag inflators.
It is expected that Takata’s PSAN-related operations will be run by a reorganised Takata following the transaction closing and eventually will be wound down.
By combining substantially all of Takata with KSS, the transaction will form a global safety supplier with around 60,000 employees in 23 countries.
For the full story, see the August 2017 edition of MobileTex. Not a subscriber? Sign up HERE