The automotive technology company Veoneer today announced that it has entered into an agreement with an investment fund managed by American Industrial Partners (“AIP”), for the acquisition of Veoneer’s Restraint Control Systems business from SSW Partners LP (“SSW”).
The transaction with American Industrial Partners Capital Fund VII (“AIP Fund VII”) completes Veoneer’s and SSW’s strategy of finding the right long-term homes for Veoneer’s three original lines of business: Arriver™ Software, now owned by Qualcomm; Active Safety, now owned by Magna International; and Restraint Control Systems, to be acquired by AIP Fund VII.
AIP invests in industrial businesses with a long track record of partnering with and growing businesses across industrial end markets, including several investments in the automotive sector. The combination of AIP’s process for investing behind operational capabilities and Veoneer’s industry-leading position, products, and competence in Restraint Control Systems creates a strong platform for long-term, sustainable growth for Veoneer, its customers, products and people.
“We are pleased to announce this transaction with AIP, who bring a differentiated operating skillset alongside long-term capital that present a compelling platform for Veoneer’s future growth,” said Jacob Svanberg, Chief Executive Officer, Veoneer. “We are grateful for our loyal customers, supplier partners, and our dedicated employees, whose relentless pursuit of quality and innovation has created a leading platform of life-saving technology.”
In April 2022, SSW acquired Veoneer in an all-cash transaction representing a total equity value of $4.6 billion. Qualcomm Incorporated subsequently completed the acquisition of Arriver™ from SSW. On June 1, 2023 Magna International completed the acquisition of Veoneer’s Active Safety business.
Evercore and Morgan Stanley & Co. LLC acted as financial advisors to Veoneer and SSW. Davis Polk & Wardwell LLP and Eversheds Sutherland LLP acted as legal counsels to Veoneer and SSW. Ropes & Gray LLP acted as legal counsel to AIP. Baker Botts LLP acted as regulatory counsel to AIP, Veoneer and SSW.