London—Dentons is pleased to have advised KKR-backed Calsonic Kansei on the agreement by its holding company, CK Holdings Co., Ltd., to acquire Magneti Marelli S.p.A., the automotive components business of Fiat Chrysler Automobiles N.V..

Following the closing of the transaction, which is valued at €6.2 billion, CK Holdings will be renamed Magneti Marelli CK Holdings*. Magneti Marelli CK Holdings will supply components to Fiat Chrysler through a multi-year agreement. Magneti Marelli's operational headquarters will remain in Milan, Italy while the existing Calsonic Kansei operational headquarters will remain in Saitama, Japan.

The combined businesses will create the world's seventh largest global independent automotive components supplier based on total revenues. Magneti Marelli CK Holdings will operate out of nearly 200 facilities and R&D centres across Europe, Japan, the Americas and Asia-Pacific.

Stephen Levy, Private Equity partner at Dentons, said, "This deal is creating a combined company that will have improved scale and financial strength, highly complementary combined product lines and geographic footprint – all of which will position it well to serve its global customers. We are delighted to have assisted Calsonic Kansei on what is set to be a transformative deal for the two businesses."
The deal is expected to close in the first half of 2019 and is subject to regulatory approvals and other customary closing conditions.

Dentons provided global legal due diligence and transaction structuring and documentary advice, working together with Simpson Thacher & Bartlett, which led on the legal documentation, structuring and negotiations for Calsonic Kansei.

The Dentons team was led by corporate partners Jayne Schnider and Stephen Levy, as well as corporate counsel Donald Smith, with support from legal teams in several other jurisdictions, including Italy (Magneti Marelli's headquarters), led by Italian head of corporate Stefano Speroni; Brazil, led by Juliana Martins; China, led by Amanda Guo; and Germany, led by Thomas Schubert.

Dentons is a longstanding adviser to global investment firm KKR, having also advised the firm on its acquisition earlier this year of Unilever's spreads business for €6.825 billion and on its acquisitions of Travelopia and A-Gas in 2017.

*subject to shareholder approval

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