Eastside Automotive, a unit of United Auto Parts Corp., has agreed to buy Transamericano Automotive Co., a unit that builds auto parts for Hyundai Motor Co., for about $1.3 billion, the companies said.

The deal values Transamerica’s assets at about $2.1 billion, and Transamericas earnings before interest, taxes, depreciation and amortization (EBITDA) will be about $600 million, Transamerico said.

Transamericans earnings per share, which are the company’s core operating income, are expected to grow about 2.5% to $1,400 per share.

Eastside will pay about $3.5 billion for Transamerics assets.

Transamino, which has a U.S. manufacturing plant, employs about 6,000 people, according to its website.

TransAMICAN’s auto parts business will be divided into two parts manufacturing companies.

The South Korean company has been making auto parts in the U.K. since 2000.

It also makes parts for Toyota Motor Corp. The two companies will build two new plants, one in Mexico and one in South Korea.

The Transamerians new plant will build new engines and transmissions for Hyundai and Toyota.

The company also has a factory in Brazil.

Transmerican is based in Los Angeles, and the company operates three factories in the United States.

The announcement comes as U.J.S.-South Korea relations remain strained after North Korea conducted its fourth nuclear test in January and a series of ballistic missile tests in recent months.

The North has continued to test missiles and launch satellites.

The U.N. Security Council has imposed sanctions on North Korea over its ballistic missile and nuclear programs.

TransAmerican will also be investing in North Korea, Eastside said in a statement.

TransAmICAN was founded in 2000 by Japanese billionaire Yoshihide Suga.

It sells parts to Toyota and other auto makers, and it builds vehicles for Hyundai, Volkswagen Group, Hyundai Motor and Mitsubishi Motors Corp.