Ford is getting $1 billion in buyouts from its largest auto parts supplier, Raytheon, the company announced Monday.
Ford, the largest U.S. automaker, said it will acquire Raytheons auto parts and related technology company, Murray.
The acquisition is valued at about $3 billion, according to Ford.
The buyout comes as Ford gears up to sell off the majority of its auto parts business to its suppliers.
Raytheones chief executive officer, Kevin McNamara, said Monday the deal would create more than 2,200 jobs.
Ray theons products and services include safety equipment and automotive repair.
RayTheon is one of the nation’s largest suppliers of safety-related technology, including automotive safety systems.
The company has more than 300 factories in the U. S. and more than 7,000 suppliers worldwide.
The U.K.-based company is also working to integrate with other manufacturers.
Ray Theon chief executive, Kevin Johnson, said in a statement that the buyout “is a natural extension of our business strategy.”
RayTheons business was down 5.4% in the fourth quarter of fiscal 2017 compared with the same period a year earlier, according the company’s most recent financial report.
It said it is working on an initial public offering, with an expected closing date of 2020.
Ray is expected to report results next week.
Ford shares have been on a tear since Johnson took over as chief executive last year.
The stock rose nearly 25% in 2018.
The shares are up about 30% since the end of the year.