DETROIT — Key Safety Systems Inc. has reached a final deal worth nearly $1.6 billion to acquire embattled Japanese airbag supplier Takata Corp. out of bankruptcy resulting from exploding airbag system parts linked to at least 17 deaths.
A court filing made late Friday says Key Safety and Takata have completed a series of agreements across the globe that clear the way for the deal to close. Takata also filed its final reorganization plan with the court. They also said Takata’s automaker customers have signed off on the agreement. They still need bankruptcy court approval.
The companies say the deals provide for continued employment for all of Takata’s current employees and enables them to comply with regulatory issues tied to the recalls of Takata’s exploding airbag inflators.
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The acquisition will make Key Safety of Sterling Heights, Mich., one of the largest players in the automotive safety market, with more than 60,000 employees in 23 countries and more than $7 billion in revenue. The deal would be worth $1.588 billion, according to the Friday court filing. The companies reached a tentative deal for the acquisition in June.
The negotiations to make that happen have been highly complex because of the airbag scandal and because Takata does business in so many countries. They were further complicated by the August departure of Key Safety CEO Jason Luo, who became the chairman and CEO of Ford China. Since then, Key Safety Director Yuxin Tang has led the company with help from a transition committee of Key Safety executives.
The filing says the companies expect to receive bankruptcy court approval for the deal by Dec. 6 and close it by Feb. 27.
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