Wednesday, 18 April 2018 15:44

Joyson, PAG Fund KSS to Acquire Airbag Maker Takata in Asset Deal

A consortium led by its parent Joyson Electronics and PAG, an Asia-based private equity firm and Future Industry Investment Fund provided the funding to Key Safety Systems to complete the acquisition of substantially all of the global assets of Japan-based Takata Corporation out of cross-border bankruptcies in the United States and Japan. 

Takata is a leading global supplier of vehicle safety systems including seat belts, airbags, steering wheels and child seats as well as other automotive products. Takata's liabilities associated with the recall of phase-stabilized ammonium nitrate (PSAN) airbag inflators and other liabilities were not acquired by KSS. KSS, headquartered in Michigan, is a global leader in mobility safety.

The combined company will be rebranded Joyson Safety Systems (www.joysonsafety.com) and be headquartered in Auburn Hills, MI.

"Joyson Safety Systems integrates the world-class assets and worldwide operations of KSS and Takata under one common organization and one shared mission to provide the best quality safety solutions to our customers," said Mr. Jeff Wang, Executive Chairman, Joyson Safety Systems. "We are excited about the opportunities created through this combination, and we are committed to providing safety solutions of the highest quality and reliability to drive the next generations of mobility."

Joyson Safety Systems is a global leader in mobility safety, generating annual sales of about $7 billion.  The company operates in 25 countries with more than 50,000 employees providing life-saving technologies to both automotive and non-automotive markets.

"PAG has a long track record of working with our partners to build successful companies," said Weijian Shan, Chairman and CEO of PAG. "The combination of KSS and Takata creates a best-in-class business with strong growth potential. We're committed to working with Joyson Safety Systems to build an industry-leading company."

The purchase agreement announced on Nov. 21, 2017 was subject to a number of closing conditions, all of which have now been met, including antitrust clearance and bankruptcy court approvals in multiple countries.  KSS has now successfully acquired substantially all of Takata's assets, except for certain assets related to the manufacturing and sale of phase-stabilized ammonium nitrate (PSAN) airbag inflators.

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