Continental AG has purchased the rest of the Temic electronics business from DaimlerChrysler AG for about $188.8 million.
German supplier Continental had acquired a 60 percent stake in Temic a year ago for about $348 million and folded the operation into its automotive systems division as Conti Temic Microelectronic GmbH. Continental arranged to buy the rest of the company by at least 2003.
But DaimlerChrysler, which is shedding noncore assets in part to raise cash to help its restructuring, decided to hand over the rest of Conti Temic sooner than that deadline. The most recent transaction has a retroactive effective date of April 1, which is when the automaker exercised its sell option on the remainder of the electronics unit.
The deal will add to Continental's debt burden, already considered high by some industry analysts.
Conti Temic produces sensors and electronic components for chassis, brake, safety and other automotive systems. It had sales of about $985 million in 2000, 35 percent of that with DaimlerChrysler. 2001 sales weren't available, but Continental officials said the business has shown positive development in the last year.
Continental, which supplies tires, brake systems and suspension components, aims to use the electronics expertise to better link chassis systems for improved performance.