Takata Corp. (OTCPK:TKTDY) announced on Wednesday that it sold its interiors subsidiary, Irvin Automotive Inc., to Piston Group, which was owned by the retired professional basketball player Vinnie Johnson. According to Reuters, the transaction would close later this week. Takata didn’t disclose the terms yet, but according to Nikkei, the price of the deal would be around 17 million yen ($170 million).
Irvin Automotive Inc., based in Pontiac Michigan, produces injections-molded components and parts like interior trim. According to the company, Irvin had $500 million in sales annually.
The deal was announced when Takata faced billions of dollars in liabilities. Takata’s air bags has safety problems that has caused over a dozen deaths and more than 100 injuries worldwide, and the company is currently working on solving the problems and discussing with auto suppliers and private-equity firms for possible cash infusion to help out.
By the end of March, Takata lost over $400 million in the past two fiscal years and has billions of dollars in liabilities after recalling around 70 million air bags in the United States and around 100 million worldwide. Earlier this year, Takata put Irvin up for sale to raise money to alleviate its financial distress.
According to the statement announced on Wednesday, after the deal, Piston Group would be one of the five largest closely held auto supplies in the southeast Michigan, and would raise its annual revenue to $1.8 billion from $1.3 billion.