Toyota Motor Corp. says that it will pay $3 billion for Kato chain and blocks.
The Japanese carmaker announced that it plans to purchase Kito, a Japanese maker of high-tech block parts for the K3 and K4 sedan, from the U.S. maker of the Lexus brand.
The company also will offer $1 billion in cash and stock for the company to cover the cost of the transaction.
In addition to the financing, Toyota will invest in a network of Kito maintenance facilities, Toyota said in a statement on Wednesday.
The Toyota plant will be able to service Kito parts and repair Kato parts, and it will also be able repair Kito blocks, the company said.
The deal follows a string of high profile automotive deals that have led to new demand for high-quality chain and chain repair services.
Toyota announced in August that it would buy a U.K. repair firm, Kito Systems, for $7 billion, a deal that has helped spur new demand.
In April, Toyota also announced that its plant in Alabama would begin using Kito tools.
The Kato company has built its reputation on its high-performance, high-priced chain and gearbox parts, which are also used in luxury vehicles like the Audi Q7 and Porsche 918 Spyder.
The Kato system has been around for about 50 years, and Toyota is among the first carmakers to introduce it into the consumer market.
The new deal comes as the Kito business has struggled to survive after it was acquired by the Japanese auto giant in 2018.
That acquisition prompted Toyota to make an investment of $1.5-billion in the company in 2018, but its stock has plummeted.
Toyota stock closed at 1,903 yen, or $17.90, down about 11 percent from the previous close.