Fiat Chrysler Automobiles N.V. has sold its Magneti Marelli parts unit to KKR & Co.'s Calsonic Kansei in a transaction valued at 6.2 billion euros ($7.1 billion). The transaction, which was announced Oct. 22, will create a top-10 global independent automotive parts supplier.
The new entity, Japan-based Magneti Marelli CK Holdings, has entered into a multiple-year agreement to provide parts to FCA. Magneti Marelli's operations in the Corbetta section of Milan, Italy will remain in place with its current "industrial footprint and employment levels," according to FCA.
Beda Bolzenius, the current chief executive of Calsonic Kansei, will lead the combined entity. Ermanno Ferrari, Magneti Marelli's chief executive, will join the board of the new entity.
The sale represents the first M&A activity by Mike Manley, who was named FCA's chief executive in July following the death of Sergio Marchionne.
Calsonic Kansei manufactures thermal products, exhaust systems, interiors, and electronics. The company has also sponsored Formula 1 racing. Magneti Marelli parts are sold under the Mopar brand.