NEW YORK (TheStreet) -- Auto-supplier Autoliv (ALV) - Get Report did another deal with Delphi Friday, agreeing to buy its European pyrotechnic safety switch assets, which are expected to generate annual sales of $10 million in 2010.
The pyrotechnic safety switch, triggered by the deployment of the airbag during an accident, helps reduce the likelihood of short circuits and fires. Among Delphi's switch customers are
Autoliv said the acquisition supports the company's efforts to expand in the safety market and believes that with the trend towards smaller vehicles and alternative energies in many light vehicles, the demand for products like the pyrotechnic safety switch could become more important in the coming years. Autoliv estimates that this transaction will close by April 30, 2010.
Friday's deal follows Autoliv's announcement last week that it had acquired Delphi's passive safety operations in Korea and China. The company said that it expected these operations to contribute around $220 million to its sales in 2010.
Autoliv's most recent purchases add to Autoliv's acquisition of Delphi auto safety-related assets in Europe and North America in 2009. Those purchases were expected to contribute about $150 million to Autoliv's sales in 2010.
Autoliv stock jumped 4.2% to $53.60 during Friday afternoon trading.
-- Reported by Andrea Tse in New York
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