Safety Components Acquires Shareholder

COSTA MESA — Auto air-bag maker Safety Components International Inc. said it has acquired the car parts company that has been its major shareholder since its inception in 1994. Both Safety Components and the parts company, Valentec International Corp., are based in Costa Mesa.

Publicly traded Safety Components was formed from several former Valentec units, the two companies share headquarters, and Safety Components chief executive, Robert A. Zummo, owned 80% of Valentec’s stock until last week’s transaction.

Valentec, which makes stamped and machined metal automotive parts, will continue operating as a subsidiary of Safety Components. Zummo and other Valentec shareholders received nearly 1.4 million shares of Safety Components stock for their interest in Valentec. Zummo now owns almost 19% of Safety Components’ common stock.

Safety Components said the deal was negotiated by a special committee of independent members of its board of directors. Zummo said the acquisition makes strategic sense because Valentec supplies Safety Components with air-bag system parts.