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.
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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.
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By GlobalDataTokai Rika, based in Aichi, Japan, said it aims to increase its share of the global seatbelt business to 20%, Reuters added.
