Monday 22 October 2018 9:57 am

Fiat to sell components maker to KKR-backed firm, creating major car parts manufacturer


Fiat will sell its car parts business Magneti Marelli to private equity backed Calsonic Kansei for €6.2bn, creating one of the world’s largest components companies.

It will put US private equity firm KKR in charge of a new entity, Magneti Marelli CK Holdings, with total revenues of around €15bn.

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The deal, which is expected to close after regulatory approval in the first half of next year, gives KKR a business with nearly 200 facilities and research and development centres in Europe, Japan, the Americas and Asia Pacific region.

Fiat will continue to buy its parts, including lighting, electronics and exhausts, from the new firm.

The business, set to be the world's seventh largest automotive components manufacturer, will be run by Calsonic Kansei chief executive Beda Bolzenius, while Ermanno Ferrari, the head of Magneti Marelli, will join the board.

Bolzenius said: “Our industry has gone through fierce change in recent years and the phase to come will be even more dynamic.

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“It is exciting to form a strong platform for Calsonic Kansei and Magneti Marelli to work together and create a competitive automotive supplier which is extremely well placed among the global top ten.

“Together, we will benefit from complementary geographic footprints and product lines, while our respective customers will benefit from an increased investment in people, processes and innovative new products.”