Hitachi Automotive Systems to accelerate its transformation toward operational excellence and industry leadership

Signs a put-option agreement to acquire Chassis Brakes International, to create an industry leader in automotive safety solutions

Hitachi Automotive Systems, Ltd., a wholly owned subsidiary of Hitachi, Ltd. (TSE: 6501, “Hitachi”), today announced that it has granted KPS Capital Partners, LP a put-option agreement for the acquisition of 100% of Chassis Brakes International B.V. Staff representatives will be consulted as per applicable law, and completion will be subject to antitrust approvals.

The proposed transaction would not only strengthen Hitachi Automotive Systems’ chassis and safety systems capabilities, but also enhance the company’s motion control capabilities across the whole vehicle, supporting further development and integration of electrification, AD/ADAS technologies and software that contribute to a safer and more sustainable society. Chassis Brakes International’s highly experienced global management team, who possess significant knowledge of successful business transformation, will help drive further operational excellence, including quality standards, operating tools and processes, and digitalization.

At the same time, Hitachi Automotive Systems would be investing in a growth segment. The market for safety systems is projected to be sustainable relative to total vehicle production, regardless of the shift from conventional to electric vehicles and the growth of autonomous driving, while the shift from conventional brakes to electrically controlled brakes is projected to accelerate. The combined business would have strong growth potential and be positioned to shape the direction of advanced safety systems via advanced engineering and system design capabilities.

Chassis Brakes International is one of the world’s leading suppliers of automotive safety solutions, leveraging a comprehensive portfolio of braking technologies. The company, which is headquartered in Eindhoven, The Netherlands, operates 12 world-class, state-of-the-art manufacturing facilities as well as 11 engineering centers and sales offices in Europe, Asia, India, North America and South America and has nearly 5,500 employees. Chassis Brakes International focuses on developing safer, cleaner, smarter solutions that will support mega-trends impacting the automotive industry, such as connectivity, electrification and autonomous driving. The company had over €900 million in sales for the year ended 31 December 2018.

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SOURCE: Hitachi

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