DENSO Completes Acquisition of Magneti Marelli Thermal Systems Unit

Apr 02, 2001, 01:00 ET from DENSO International America, Inc.

    SOUTHFIELD, Mich., April 2 /PRNewswire/ -- DENSO International America's
 parent company -- Japan-based DENSO Corporation -- as of March 30, completed
 its acquisition of Magneti Marelli Climatizzazione S.p.A. (MMCL), the thermal
 systems unit of Magneti Marelli S.p.A., an Italian supplier of automotive
 components.
     DENSO decided to acquire the Italian supplier's automotive air
 conditioners unit based on its projections of expanded business of the
 products in Europe, particularly in compact cars.
     Since DENSO acquired the exclusive right to negotiate for the purchase of
 the unit on November 27, 2000, it has undergone detailed talks with MMCL and
 due diligence.  DENSO has had a joint venture agreement with Magneti Marelli
 in the air conditioner business since 1990.
     The name of the new company has yet to be decided.
     MMCL is a European leader in the development and manufacture of automotive
 air conditioners and radiators, with production facilities in Italy, Poland,
 Portugal, Argentina, Brazil and India.  In Europe, MMCL currently sells these
 products to leading car manufacturers including Fiat, Peugeot, and Renault.
 The company owns approximately a 10 percent share of the European car air
 conditioner market, ranking fourth behind Valeo, Behr and Visteon.
     DENSO has maintained the top position in the world's automotive air
 conditioner market since 1990.  In 1999, the company owned a market share of
 about 22 percent.
     "The acquisition of MMCL consolidates our position in the European
 marketplace, making DENSO Europe's premier manufacturer of air conditioning
 systems," said DENSO President and CEO Hiromu Okabe.  "DENSO ranks third in
 the European car air conditioner market with a share of 18 percent."
     DENSO Corporation, located in Kariya, Aichi prefecture, is a leading
 automotive supplier of advanced technology, systems and components.  With
 81,000 employees in 27 countries and regions, DENSO's consolidated global
 sales for fiscal 2000 ending March 31, 2000 totaled US$17.8 billion.
     In Europe, DENSO has 19 companies in 10 countries, and its consolidated
 sales for fiscal 2000 totaled US$1.6 billion.  In North America, DENSO employs
 more than 13,000 people at 21 companies.  Consolidated North American sales
 for 2000 are estimated at US$4.1 billion.
 
               Profile of Magneti Marelli Climatizzazione S.p.A.
 
     Company Name:            Magneti Marelli Climatizzazione S.p.A.
     Location:                Poirino, Italy
     President:               Manfredo Nicolelli
     Capital:                 US$49 million (55 million euro)
     Ownership:               100 percent by DENSO INTERNATIONAL EUROPE B.V.
     Sales (consolidated):    US$472 million (530 million euro, as of 2000)
     Employees:               2,600
 
 

SOURCE DENSO International America, Inc.
    SOUTHFIELD, Mich., April 2 /PRNewswire/ -- DENSO International America's
 parent company -- Japan-based DENSO Corporation -- as of March 30, completed
 its acquisition of Magneti Marelli Climatizzazione S.p.A. (MMCL), the thermal
 systems unit of Magneti Marelli S.p.A., an Italian supplier of automotive
 components.
     DENSO decided to acquire the Italian supplier's automotive air
 conditioners unit based on its projections of expanded business of the
 products in Europe, particularly in compact cars.
     Since DENSO acquired the exclusive right to negotiate for the purchase of
 the unit on November 27, 2000, it has undergone detailed talks with MMCL and
 due diligence.  DENSO has had a joint venture agreement with Magneti Marelli
 in the air conditioner business since 1990.
     The name of the new company has yet to be decided.
     MMCL is a European leader in the development and manufacture of automotive
 air conditioners and radiators, with production facilities in Italy, Poland,
 Portugal, Argentina, Brazil and India.  In Europe, MMCL currently sells these
 products to leading car manufacturers including Fiat, Peugeot, and Renault.
 The company owns approximately a 10 percent share of the European car air
 conditioner market, ranking fourth behind Valeo, Behr and Visteon.
     DENSO has maintained the top position in the world's automotive air
 conditioner market since 1990.  In 1999, the company owned a market share of
 about 22 percent.
     "The acquisition of MMCL consolidates our position in the European
 marketplace, making DENSO Europe's premier manufacturer of air conditioning
 systems," said DENSO President and CEO Hiromu Okabe.  "DENSO ranks third in
 the European car air conditioner market with a share of 18 percent."
     DENSO Corporation, located in Kariya, Aichi prefecture, is a leading
 automotive supplier of advanced technology, systems and components.  With
 81,000 employees in 27 countries and regions, DENSO's consolidated global
 sales for fiscal 2000 ending March 31, 2000 totaled US$17.8 billion.
     In Europe, DENSO has 19 companies in 10 countries, and its consolidated
 sales for fiscal 2000 totaled US$1.6 billion.  In North America, DENSO employs
 more than 13,000 people at 21 companies.  Consolidated North American sales
 for 2000 are estimated at US$4.1 billion.
 
               Profile of Magneti Marelli Climatizzazione S.p.A.
 
     Company Name:            Magneti Marelli Climatizzazione S.p.A.
     Location:                Poirino, Italy
     President:               Manfredo Nicolelli
     Capital:                 US$49 million (55 million euro)
     Ownership:               100 percent by DENSO INTERNATIONAL EUROPE B.V.
     Sales (consolidated):    US$472 million (530 million euro, as of 2000)
     Employees:               2,600
 
 SOURCE  DENSO International America, Inc.