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Key Safety Systems Finalizes Takata Purchase
Key Safety Systems Inc. has completed the details of its $1.6 billion bid to buy bankrupt airbag supplier Takata Corp.
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Key Safety Systems Inc. has completed the details of its $1.6 billion bid to buy bankrupt airbag supplier Takata Corp.
The deal awaits bankruptcy court approval, which is expected on Dec. 6. The companies expect to close the transaction by the end of February.
The complex purchase will make Key, already a maker of airbag and seatbelt systems, a major player in the global market. Headquartered in suburban Detroit, the company is a subsidiary of China’s Ningbo Joyson Electronic Corp. The merger will create a business with $7 billion in revenue, operations in 23 countries and more than 60,000 employees.
Key’s takeover provides continuity for Takata’s airbag business in the wake of the scandal involving the Japanese supplier’s explosion-prone airbag inflators. The Takata design, which has been blamed for at least 16 fatalities, has prompted 19 carmakers to recall more than 100 million of the devices worldwide.
Key will employ a more stable airbag propellant widely used by other airbag system suppliers.
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