USA: TRW Canada sells Quality Safety Systems stake to Tokai Rika - report
Japanese automotive parts maker Tokai Rika Co. Ltd. on Sunday said it bought from TRW Canada Ltd. the 60% of a private seatbelt manufacturer it doesn't already own to help it increase its share of the global seatbelt business, according to Reuters.
According to the report, the companies did not disclose the financial terms of the deal.
Reuters noted that automotive parts companies have been a hot sector for acquisitions as “buyout shops” try to consolidate the fragmented industry. In the last year Blackstone bought TRW Inc.'s automotive parts business for $US4.7 billion, including debt, and Carlyle Group agreed to buy airbag and seatbelt maker UIS Inc. for about $800 million, the report added.
Reuters reported that Quality Safety Systems, which has two plants in Ontario, Canada, said it has annual sales in excess of $100 million and added that Tokai Rika bought Quality Safety through its Canadian subsidiary.
According to Reuters, Tokai Rika said the deal would give it a "more direct role" in supporting customers and enable it to compete for orders from General Motors, Ford, DaimlerChrysler and European car makers.
Tokai Rika, based in Aichi, Japan, said it aims to increase its share of the global seatbelt business to 20%, Reuters added.