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Electronics Production |

KSS to acquire Takata’s global assets and operations

Takata Corporation, has signed a definitive asset purchase agreement with US-based Key Safety Systems (KSS), under which KSS will acquire substantially all of Takata’s global assets and operations for an aggregate purchase price of USD 1.588 billion.

It was earlier this summer that the American company agreed in principle to sponsor a restructuring plan for the sale of Takata’s global assets and operations. But now, the papers are signed and KSS will acquire substantially all of Takata’s assets, except for certain assets and operations related to Takata’s manufacturing and sale of phase-stabilized ammonium nitrate (PSAN) airbag inflators. Takata’s PSAN-related operations will be run by reorganised Takata following the transaction closing and eventually will be wound down. Takata will continue to produce airbag inflator replacements, Takata states in a press release. “We are very pleased to have reached this agreement with KSS, which is an important step toward the consummation of our sale and achieving the objectives we identified at the outset of this process. Our top priorities continue to be providing a steady supply of products to our valued customers, including replacement parts for recalls, and a stable home for our exceptional employees,” said Shigehisa Takada, Chairman & CEO of Takata. Takata has filed final forms of all definitive transaction documents in the U.S., including its Chapter 11 plan in the U.S. The companies expect to close the transaction during the first quarter of 2018. “The acquisition of Takata fits perfectly with KSS’s century-long commitment to the 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. We enter this transaction in a spirit of partnership and anticipate executives and employees from both KSS and Takata together will play important roles – from initial integration through strategic execution,” saif Yuxin Tang, President of KSS. Takata intends to use the proceeds from sale to meet requirements of plea agreement with U.S. Department of Justice, to satisfy administrative costs and expenses of the restructuring, and to fund unsecured creditor recoveries.

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March 15 2024 2:25 pm V22.4.5-1
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