Autoliv to acquire Tyco Electronics unit

The business that Autoliv intends to acquire, is a “carve-out” of the Radio Frequency and Subsystems business unit within Tyco Electronics. This part of the business unit designs and manufactures active radar proximity and attribute sensor systems used in vehicle driver assist and safety applications for the global automotive market -- and is the development partner of Daimler for automotive radar sensor technology. Existing customers include BMW and Chrysler along with other non OEM customers. Based in Lowell, Massachusetts, USA and Schweinfurt, Germany, the business includes approximately 115 highly specialized technical, commercial and manufacturing employees who will support the activities required to intensify Autoliv’s efforts in the growing automotive active safety market. This acquisition will enable Autoliv to leverage existing customer relationships and safety system capability to increase its market position in automotive safety electronics. The technology and intellectual property included in the transaction includes short-, medium- and long-range radar products. Automotive safety system applications for this technology include blind spot detection, lane change assist, adaptive cruise control, collision mitigation by braking and side pre-crash sensing, along with back-up and park assist functions. It is Autoliv’s expectation that the sales of the acquired business will approach $100 million within three years and that this acquisition should not materially impact Autoliv's earnings in 2008. In 2009, Autoliv expects the business will have an accretive earnings per share effect and should be accretive to operating margin and return on capital in 2010. The deal is expected to close by the end of September 2008, assuming all regulatory approvals are obtained.