Autoliv To Establish JV With Nissin Kogyo - Quick Facts

(RTTNews) - Autoliv, Inc. (ALV) announced it has entered into a definitive agreement to establish a Joint Venture with Nissin Kogyo, a supplier of high-performance braking systems mainly in Japan, in the product areas of "Brake Control and Brake Apply Systems". The joint venture will combine the current brake control business of Autoliv with a "carve-out" of Nissin Kogyo's automotive braking business. The enterprise value of the JV is around $545 million. Upon closing, Autoliv will purchase 51% of the JV for approximately $278 million.

With manufacturing facilities in Japan, China and the U.S., the JV will focus on the design, development and production of "Brake Control and Brake Apply Systems" for the global light vehicle market. The JV will have three engineering sites and two test tracks with access to over 1,200 patents and other intellectual property.

Autoliv said the 2016 pro-forma Annual Revenue Estimate for the JV is around $600 million. Excluding purchase accounting effects, Autoliv expects the JV to operate in line with the company's long-term operating margin targets for 2016.