Clearwater International has advised Ningbo Joyson Electronic Corporation (“Joyson”), a leading global automotive supplier, on its acquisition of Key Safety Systems (“KSS”).
Under the terms of the agreement, Joyson will acquire the outstanding shares of KSS in a cash transaction valued at approximately $920m (€815m) on an equity value basis. The transaction is expected to close in the first half of 2016,
and is subject to regulatory filings, approvals and other customary closing conditions.
KSS is currently owned by funds managed by FountainVest Partners, a Hong Kong-based private equity firm, the Canada Pension Plan Investment Board, and Crestview Partners, a New York-based private equity firm, along with members of KSS management.
Each of the existing shareholders views Joyson as a strategic investor, with long-term vision, that will help KSS achieve new heights. Joyson has stated that KSS will operate as an independent group company which will maintain its Michigan, USA headquarters and continue to be led by current KSS CEO Mr. Jason Luo.
The combination of Joyson and KSS will create a global leader in the automotive supplier business with pro forma
combined worldwide sales of approximately $3bn (€2.7bn) and 20,000 employees.