Simpson Thacher is representing the sellers, led by FountainVest Partners (“FountainVest”), in connection with the merger of their portfolio company, Key Safety Systems (“KSS”), with Ningbo Joyson Electronic Corporation (“Joyson”). Joyson will acquire outstanding shares of KSS in a cash transaction valued at approximately US$920 million on an equity value basis. The combination will create a global leader in the automotive supplier business with pro forma combined worldwide sales of approximately US$3 billion and 20,000 employees. The merger is expected to close in the first half of 2016, and is subject to customary closing conditions, including receipt of regulatory approvals.
FountainVest is a leading China-focused private equity firm that focuses on long term oriented investments and targets industry leaders in the industrial, consumer and retail, media and entertainment, and healthcare sectors. KSS is a global leader in the system integration and performance of safety-critical components to the automotive and non-automotive markets serving the active safety, passive safety and specialty product sectors. Joyson is a leading global automotive supplier that develops and supplies high quality products and systems in the climate control, driver control, electronic control, industrial automated assembly, sensor, and specialty sectors, and is listed on the Shanghai Stock Exchange.
The Simpson Thacher team for the transaction included Leiming Chen, Ian Ho and Brian Mathes (Corporate and M&A – Hong Kong); Jackie Kahng (Banking and Credit – Hong Kong); Lori Lesser and Marcela Robledo (Intellectual Property); Judy Yan (Tax); Adeeb Fadil (Environmental); Tristan Brown (Executive Compensation and Employee Benefits); and Peter Thomas, Robert Smit, Ellen Frye, William Kearney and David Shogren (Regulatory).