KKR is considering a sale of Marelli’s suspension systems business as the private equity firm shifts the focus of the supplier toward more profitable products, according to people familiar with the matter.
The buyout firm is working with an adviser on the potential disposal, which has drawn preliminary interest from private equity and strategic suitors, the people said. Marelli’s suspension arm generates annual revenue of about 900 million euros ($1.1 billion), the people said, asking not to be identified discussing confidential information.
Marelli manufactures everything from advanced driver-assistance systems to cabin temperature components. While the financial performance of its suspension business has recovered this year, KKR is seeking to streamline Marelli’s portfolio and concentrate on higher-end technology products, such as electrification and lighting, the people said.