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Key Safety Systems Details Takata Purchase
Michigan-based Key Safety Systems Inc. has arranged the necessary funding for its $1.6 billion purchase of almost all assets belonging to bankrupt airbag maker Takata Corp.
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Michigan-based Key Safety Systems Inc. has arranged the necessary funding for its $1.6 billion purchase of almost all assets belonging to bankrupt airbag maker Takata Corp.
The funds are coming from a group led by Key’s owner, China’s Ningbo Joyson Electronic Corp. other major participants are Asian investment firm PAG and China’s state-owned Future Industry Investment Fund.
Ningbo Joyson says the purchase does not include Takata’s sizeable liabilities, which stem from its explosion-prone airbag inflators. More than 100 million of the defective units are being recalled worldwide by 19 carmakers.
The deal will combine Takata’s assets with Key Safety Systems and rename the new entity Joyson Safety Systems, headquartered in Auburn Hills, Mich.
Ningbo Joyson will own a majority stake in the new company. The business will retain Takata’s 40,000 employees, expanding Key’s workforce to 50,000 people and turning it into a $7 billion safety systems giant with operations in 23 countries.
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