Magneti Marelli Sold for $7.1 Billion
CBJ — Calsonic Kansei of Japan is acquiring Fiat Chrysler’s Magneti Marelli for $7.1 billion to form the seventh-largest independent car parts supplier in the world.
This is the first major acquisition by CEO Mike Manley, who took over in July after the sudden death of long-time boss Sergio Marchionne. It’s estimated the company will now create a revenue base of nearly $18 billion.
The newly formed Magneti Marelli CK Holdings is likely to cut costs through synergies and expand its customer base as components makers try to keep up with a shift by carmakers into autonomous driving, connected cars and electric vehicles.
Calsonic Kansei is owned by U.S. private equity firm KKR.