KKR's Calsonic bolts on Magneti Marelli in €6.2bn deal

Alessia Argentieri
22 October 2018

Tweet
Facebook
LinkedIn
Google plus
Send to

KKR's Japan-based Calsonic Kansei has acquired Italian automotive components manufacturer Magneti Marelli from Fiat Chrysler Automobiles for €6.2bn.

CK Holdings Co, Calsonic's holding company used to ink the transaction, will be renamed as Magneti Marelli CK Holdings, following completion of the deal, which is expected to close in the first half of 2019.

The combined businesses of Calsonic and Magneti Marelli will generate revenues of €15.2bn, and operate 200 facilities and R&D centres across Europe, Japan, the Americas and Asia Pacific. The merger will create the world's seventh largest global independent automotive components supplier based on total revenues, according to a statement.

The new entity will be led by Beda Bolzenius, currently CEO of Calsonic, while Ermanno Ferrari, CEO of Magneti Marelli, will join the company's board. According to the deal, Magneti Marelli will maintain its existing operational headquartered in Corbetta, near Milan.

Magneti Marelli was founded in 1919 and was wholly acquired by Fiat in 1967. The company specialises in manufacturing automotive components for lighting, powertrain, high-tech electronics, exhaust systems, suspensions and shock absorbers. It employs around 43,000 staff, operates 85 production facilities and generated revenues of €8.2bn in 2017.

Following the deal, FCA will enter into a multi-year supply agreement with Magneti Marelli CK Holdings in order to maintain the company's operations in Italy and sustain its industrial footprint and employment level.

Calsonic Kansei, a manufacturer and supplier of auto parts, was established in 1938 and is headquartered in Saitama, Japan. The company generated revenues of €7.7bn in its 2017 fiscal year. KKR acquired Calsonic, at the time listed on the Tokyo stock exchange, from Nissan Motor, which owned a 41% stake in the business, for $4.5bn in 2016. Subsequently, the private equity firm launched a tender offer on the remaining publicly traded shares of the company and took it private in 2017.