Veoneer wraps up sale of restraint control systems business to American Industrial Partners
Veoneer has officially completed the sale of its Restraint Control Systems business to American Industrial Partners Capital Fund VII (AIP Fund VII), a significant transaction first publicized on December 6, 2023. This move marks a pivotal shift in Veoneer’s operational focus, emphasizing the company’s strategic reorientation. The acquisition, involving Veoneer, a leader in Automotive Safety Electronics, and AIP Fund VII, showcases a robust confidence in the future growth and development of the automotive safety sector.
With Veoneer’s products being a staple in nearly 25% of all cars produced globally in the past year, their Restraint Control Systems have been instrumental in ensuring passenger safety during traffic incidents. This acquisition not only highlights Veoneer’s dominance in the market but also underscores the company’s commitment to innovation, quality, and customer service. Under the new ownership of AIP, the Restraint Control Systems business is poised for sustainable growth, offering tangible benefits to employees, suppliers, customers, and ultimately, the end-users.
The sale to AIP Fund VII is part of Veoneer’s broader strategy to find suitable successors for its original three business lines. This strategic realignment has led to the acquisition of the Arriver™ Software by Qualcomm and the Active Safety segment by Magna International, indicating a significant reshaping of Veoneer’s business focus. These divestitures reflect a deep understanding of the evolving automotive industry, with a clear emphasis on enhancing core competencies and fostering innovation.
The transaction was facilitated by renowned financial advisors Evercore and Morgan Stanley & Co. LLC, alongside legal expertise provided by Davis Polk & Wardwell LLP, Eversheds Sutherland LLP, Ropes & Gray LLP, and Baker Botts LLP. Their involvement underscores the complexity and significance of the deal, ensuring a smooth transition and alignment with strategic objectives.
The acquisition of Veoneer’s Restraint Control Systems by American Industrial Partners represents a strategic alignment with industry trends towards enhanced automotive safety and technology innovation. This deal not only signifies a pivotal shift for Veoneer but also highlights the industry’s focus on safety and sustainable growth. With AIP’s backing, the Restraint Control Systems business is well-positioned to expand its market reach and continue its legacy of innovation and quality in automotive safety.