For about $188.8 million, Continental AG purchased from DaimlerChrysler AG the remaining 40 percent of the Temic electronics business it didn't own.
German supplier Continental acquired a 60 percent stake in Temic a year ago for about $348 million. It folded the operation into its automotive systems division as Conti Temic Microelectronic GmbH.
Continental had the option to buy the rest of the company in 2003, while DaimlerChrysler had an option to sell its stake on April 1.
The automaker, which is shedding noncore assets in part to raise cash to help its restructuring, decided to exercise that option. The deal was announced Tuesday, April 9.
The transaction will add to Continental's debt burden, already considered high by some industry analysts. Continental has debt of about $2.38 billion.
"We have sufficient credit lines to handle it," Continental spokesman Jim Gill said of the Conti Temic purchase.
"We've obviously been able to plan for it."
Conti Temic produces sensors and electronic components for chassis, brake, safety and other automotive systems.
It had sales of about $985 million in 2000, including 35 percent with DaimlerChrysler.
Sales for 2001 weren't available, but Continental officials said Conti Temic sales improved slightly during the past year.
Continental, which supplies tires, brake systems and suspension components, aims to use the electronics expertise to better link chassis systems for improved performance.
The company had sales of about $9.86 billion in 2001.
It ranked No. 20 on the Automotive News list of the top 150 original equipment parts suppliers in North America, with estimated original equipment sales of $1.62 billion in 2001.