KKR has named one of its partners, Dinesh Paliwal, to run portfolio company Marelli as the COVID-19 pandemic forces the Italian auto-parts maker to make more drastic restructuring moves, Bloomberg reports, citing people familiar with the matter.
Marelli CEO Beda Bolzenius is expected to resign as soon as next month under the plan that involves job and cost cuts, they said.
KKR partner and Marelli Executive Chairman Paliwal has already taken control of the company, the people told Bloomberg. They didn’t know if he would keep the role on a long-term basis.
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The company could cut more than 3,000 jobs, about double its previous plan, and close some locations, they said. Plans aren’t final and could still change, they added.
The private equity firm is also considering selling Marelli’s suspension-systems business in an effort to focus on more profitable products, people familiar with the matter told Bloomberg in June.
Fiat Chrysler agreed in 2018 to sell its Magneti Marelli division to KKR’s Calsonic Kansai in a €6.2B transaction.
Source: Seeking Alpha
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