Carlyle Group Buying Marelli Motori for $280.5 Million

Corporate holding company Carlyle Group (NASDAQ: CG  ) signed a deal to acquire a new subsidiary this week.

On Thursday, Carlyle announced it has agreed to buy Marelli Motori from Britain's Melrose Industries in a deal expected to close in August. Based in Italy, Marelli is one of the world's largest manufacturers of industrial generators and electric motors for the power generation, marine, oil & gas, and industrial manufacturing markets.

Explaining the purchase, co-head of Carlyle Europe Partners Marco De Benedetti said: "Marelli Motori is an outstanding Italian company that, thanks to the quality and competence of its management, has gone through a process of true internationalization enabling them to gain recognition and a strong market position in all of the major international markets in which they operate."

It's also a growing company, having increased annual revenues 12.5% in the most recent year, to $197.3 million in 2012. With Carlyle paying $280.5 million, this works out to a 1.4-times-sales ratio on the purchase.

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  • Report this Comment On June 21, 2013, at 11:40 AM, JeanDavid wrote:

    In the 1960s, Marelli in Italy and Lucas in England were in close competition for the title of manufacturer of the worst electrical equipment for automobiles. I owned an Alfa Romeo at the time, it would hardly ever start in the wintertime. Alfa switched over to Bosch and the electrical problems disappeared. Later I had two Lotus cars and they had Lucas electrics and they were awful too. I managed to replace a lot of the Lucas electical equipment and that helped a lot. Never had electrical problemls with Honda, and now Toyota cars.

    Perhaps Marelli have improved in the last 50 years. I was unaware they made heavy electrical equipment too. But does that mean they compete with Siemans, ABB, Alsthom?

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