Marelli Secures Additional Capital to Bolster Cash and Flexibility

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May 27, 2020, 07:24 ET

SAITAMA, Japan, May 27, 2020 /PRNewswire/ -- Leading automotive supplier, Marelli, has today announced that it has secured additional funding from its shareholder, KKR, and leading Japanese banks. In light of the ongoing uncertainty caused by COVID-19, the additional capital of JPY 130bn provides greater long-term security and flexibility for Marelli in the event of an extended market downturn.

Prior to securing this long-term funding Marelli introduced a number of measures to anticipate and react to the COVID induced shutdowns, which protect the business and maintain financial flexibility. These measures, combined with the support of our shareholder and banks, leave Marelli confident in its ability to withstand the adverse, temporary impact of COVID-19 and will enable Marelli to continue with its investment plans for technology and geographic expansion.

Christoph Hobo, CFO, Marelli, said, "The effect of the COVID-19 pandemic on the global automotive industry has been significant. This funding demonstrates the strong support of our shareholder and our banks and their belief in the outlook for Marelli, its people and our overall strategy. Access to this additional capital gives us the flexibility to withstand an extended market downturn and protects the long-term financial health of the business, allowing us to continue the execution of our strategy with greater certainty and confidence."

About Marelli

MARELLI is one of the world's leading global independent suppliers to the automotive sector. With a strong and established track record in innovation and manufacturing excellence, our mission is to transform the future of mobility through working with customers and partners to create a safer, greener and better-connected world. With around 60,000 employees worldwide, the MARELLI footprint includes 170 facilities and R&D centers across Asia, the Americas, Europe, and Africa, generating revenues of 13.4 Billion Euro (JPY1,541billion) in 2019.

SOURCE Marelli