Key Safety Systems Inc. (KSS) has signed the awaited agreement to acquire Takata Corp for $1.6 billion.
Key Safety Systems, based in Detroit, USA won the bid to acquire the embattled Japanese supplier out of bankruptcy, which it filed earlier this year.
Yuxin Tang, President of KSS, said, “The acquisition of Takata fits perfectly with KSS’s century-long commitment to automotive business. The combined company will enhance our ability to serve customers globally and provide superior products and innovation in the rapidly evolving auto safety industry.”
Under the deal, Key Safety’s management vows to maintain Takata’s 45,000 team of employees with the clear exception of the problematic ammonium airbag inflator business, which is expected to end operation after the sale.
Key Safety will finance the deal by utilising existing equity and debt. The deal still requires approval from federal regulators, but once finalised the acquisition will make Key Safety one of the largest players in the safety market.
Key Safety will have more than 60,000 employees in over twenty countries and more than $7 billion in revenue.