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Takata Finalizes Asset Sale to Key Safety Systems
Bankrupt airbag supplier Takata Corp. has signed a final agreement to sell most of its assets to Michigan-based Key Safety Systems Inc. for $1.6 billion.
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Bankrupt airbag supplier Takata Corp. has signed a final agreement to sell most of its assets to Michigan-based Key Safety Systems Inc. for $1.6 billion. The transaction is expected to occur early next year.
Key reached a tentative deal in June to buy all Takata assets except those used to make replacements for the company’s explosion-prone airbag inflators. Takata will continue to supply 19 carmakers with replacements for more than 100 million inflators they are recalling because the devices could misfire in a crash and spew shrapnel into the passenger compartment.
Takata will use most of the sales proceeds to pay for a $1 billion settlement of a U.S. criminal fraud case that was concluded in January. The Dept. of Justice says the company had falsified test reports about its defective inflators since 2000. The devices have been linked to 19 fatalities worldwide.
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