Toyoda Gosei to acquire automotive saftey company Ashimori Industry through tender offer

Tokyo – Toyoda Gosei Co. has launched a tender offer to acquire Ashimori Industry Co. and make the seatbelt and airbag supplier a wholly owned subsidiary.

The move is aimed at accelerating growth in automotive safety systems and strengthening Ashimori’s high-performance products business, said Toyoda Gosei 8 Aug.

The offer will run from 12 Aug to 24 Sept and covers 4.32 million shares at Yen4,140 (€373.5) each, together with series 1–4 share acquisition rights at Yen41,390 per share.

With a minimum acceptance of 2.3 million shares, the purchase is valued at Yen17.9 billion and will be funded from company resources.

Toyoda Gosei first took a stake in Ashimori in May 2021, acquiring 13.9% of shares under a capital and business alliance agreement.

A further purchase in Nov 2023 raised its holding to 14.5%, making Ashimori an equity-method affiliate (ERJ report).

Under the alliance, Toyoda Gosei has strengthened synergies in the areas of development and design, sales, procurement, and production, aiming to become "a system supplier that can propose and provide a total range of safety systems."

“Making Ashimori Industry a wholly owned subsidiary will maximise the effect of integration in the safety systems business,” Toyoda Gosei said.

The company added that the move will also support the growth of Ashimori’s high-performance products line, “to help Toyoda Gosei Group meet customer needs and respond to market changes in a timely manner.”

The transaction comes under the supplier’s “2030 Business Plan,” which sets out a strategy to focus resources on domains delivering both social and economic value.

These include automotive safety systems, comfort technologies and decarbonisation.

“We are pursuing the possibilities of polymers to contribute to a future of better mobility and living,” Toyoda Gosei stated in its long-term plan.