Ningbo Joyson acquires Key Safety Systems


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.

“I have always been intrigued by the safety market and the underlying technology that provides the opportunity to save lives. KSS has emerged as an industry leader well recognised for its strong global management, innovative technology, high quality worldwide manufacturing presence and diverse customer base. I am particularly thrilled about the prospect of moving forward together in the areas of active safety, autonomous & intelligent driving and HMI where the companies have unique synergy. This is well aligned with the Joyson strategy of being a trusted global partner to the world’s best automakers while earning respect as a high growth company.”

Jeff Wang, Chairman and Founder, Joyson

“This is a milestone transaction for Chinese outbound investment in the automotive sector. We are pleased to serve a marquee client and an industry leader and add value in solving very complex transaction-related issues.”

Barry Chen, Partner, Clearwater International