Private Equity Firm to Buy Nissan-Backed Supplier Calsonic

U.S. buyout firm KKR & Co. is buying Nissan Motor-backed auto parts maker Calsonic Kansei Corp. for up to 498.3 billion yen ($4.5 billion) in its biggest deal in Japan, seizing on a rare chance there to do a multi-billion dollar purchase.

KKR beat out rival private equity firms Bain Capital and MBK Partners, which, according to Thomson Reuters LPC, had bid to buy Nissan's stake. Japan's second-biggest automaker opened the auction to sell the stake in June.

Calsonic provided private equity firms a rare opportunity to conduct a multi-billion dollar deal in a country where large companies are still reluctant to sell their units through drastic restructuring.

The KKR deal comes as Nissan is seeking to invest in areas such as development of new technologies, including in next generation electric cars and automated driving functions. Nissan also bought a controlling stake in embattled Mitsubishi Motors Corp. earlier this year.

Calsonic Kansei, which specializes in traditional auto parts, including interiors, electronics, air conditioning units, and compressors, relies for about 80 percent of its global sales on Nissan.

KKR said it would help Calsonic expand internationally amid a shrinking home market for the Japanese company.

The company expects the tender offer to be launched in February 2017.

NAFA Fleet Management Association
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