MUNICH -- Autoliv Inc. said on Tuesday it would buy the North American airbag, seat belt and steering wheel assets of U.S. parts supplier Delphi for an undisclosed sum.
The deal strengthens the Swedish partsmaker's position as the world's No. 1 seat belt and airbag maker as it will take control of Delphi's North American airbag and seat belt assets, which will be consolidated into existing Autoliv facilities. Autoliv also gets Delphi's steering wheel operations in Matamoros, Mexico.
“We are particularly excited to have the opportunity to improve our vertical integration capability and competence in steering wheels in North America," Autoliv CEO Jan Carlson said in a statement. "The agreement also gives us an opportunity to provide our customers a seamless transition in supply of airbags and seat belts, as our own plants already are important suppliers to these customers.”
The transition is expected to occur during the next several months, the company said.
Autoliv did not disclose the financial details of the deal, but said it expected sales at the units, which supply General Motors Co., Hyundai Motor Co. and Ford Motor Co., to total $125 million next year.
The transaction was expected to close by Dec. 31, Autoliv said.
Delphi, which emerged from a four-year bankruptcy in October, has narrowed its once sprawling array of products, cutting thousands of jobs and divesting a string of businesses.
Delphi ranks No. 7 on the Automotive News Europe list of the top 100 global suppliers, with sales to automakers of $18.06 billion in 2008. Autoliv ranks 28th on the list with 2008 sales of $6.48 billion.
Reuters contributed to this report