Key Safety Systems To Buy Takata’s Assets For $ 1.57 Billion

Takata Corp’s assets have been bought by Key Safety Systems Inc in a deal worth $1,57 billion after Takata filed for bankruptcy last week.

By Stephen

Published: Monday, June 26, 2017, 13:53 [IST]

It was just ten days ago that we brought news to you that Takata, the world's largest airbag inflator manufacturer was all set to file for bankruptcy in the U.S and Japan. The company was filing for bankruptcy in order for a deal with Key Safety Systems Inc to go through. The deal in question included the latter buying out the former.

The deal has now taken place, and Key Safety Systems has bought nearly all of the assets of Takata for $ 1.57 billion. Key Safety Systems will retain almost all of Takata's employees and does not intend to shut down any of Takata's manufacturing facilities.

Takata’s Assets Bought By Key Safety Systems For $ 1.57

Takata faces billions in liabilities which have come up as a result of defective airbag inflators. These airbag inflators have been linked to at least 16 deaths and nearly 180 injuries around the world because they exploded unexpectedly.

Key Safety Systems was set to buy out Takata only on the condition that Takata would file for bankruptcy in the U.S and Japan, and this is exactly what has happened now.

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Takata was the cause of the largest recall ever seen in the automotive industry. Kay Safety Systems' purchasing of Takata would not affect the recall, and the airbag inflator replacements will continue as scheduled.