Ningbo Joyson, a Chinese company that produces automotive and industrial electronics equipment has acquired US based airbag maker Key Safety Systems (KSS) for $920m.
KSS is a Michigan-based engineering safety products supplier of automotive and non-automotive industries.
With this acquisition, Ningbo Joyson eyes annual sales of about $3b (RMB 19.5b) and will have a combined workforce about 20,000.
The board of directors of both the companies have unanimously approved of this merger. KSS is currently owned by FountainVest, Canada Pension Plan Investment Board, Crestview Partners, along with the shareholders.
Each of the stakeholders in KSS opines that Joyson is a key investor, which has long-term vision. They believe that this merger will help KSS achieve new heights.
Ningbo Joyson said KSS will continue to operate its corporate office in Michigan, US and the present CEO would also continue to lead KSS.
KSS CEO, Jason Luo said: "We are very excited to join forces with Joyson, a widely respected and successful company that possesses an entrepreneurial spirit and commitment to excellence and technology that is perfectly aligned with that of KSS.
"In partnership with FountainVest and Crestview, KSS has expanded its addressable market and achieved best-in-sector 20% revenue CAGR.
"We look forward to merging with Joyson and further accelerating the business with even faster growth in the future.
"We truly appreciate the confidence our customers worldwide have placed in KSS, and we remain committed to serving them in an aligned and collaborative manner."
Joyson chairman and founder, Jeff Wang said: "I have always been intrigued by the safety market and the underlying technology that provides the opportunity to save lives.
"KSS has emerged as an industry leader well recognized for its strong global management, innovative technology, high quality worldwide manufacturing presence and diverse customer base.
"I am particularly thrilled about the prospect of moving forward together in the areas of active safety, autonomous & intelligent driving and HMI where the companies have unique synergy.
"This is well aligned with the Joyson strategy of being a trusted global partner to the world's best automakers while earning respect as a high growth company."
Image: Ningdo Joyson Electronics presented its IAA 2013 in Frankfurt. Photo: Courtesy of Ningdo Joyson
