Panasonic of Japan sells its auto business subsidiary PAS to a fund managed by US private equity firm Apollo.
Apollo said the price is equivalent to the enterprise value of 311 billion yen (HK$16.068 billion).
Panasonic said it will take a 20% stake in Star Japan, which acquired PAS. Panasonic originally mentioned its intention to spin off PAS for independent listing.
In addition, Panasonic said its subsidiary Blue Yonder acquired US digital supply chain network supplier One Network Enterprises for $839 million.
Panasonic Automotive is a tier one global automotive supplier that designs and manufactures advanced infotainment systems and other in-vehicle solutions for leading auto manufacturers. The Company has a longstanding track record of technological and manufacturing innovation and benefits from strong market positions across its core segments with customer relationships spanning multiple decades.
Tetsuji Okamoto, Lead Partner, Japan at Apollo, said, “We are excited to partner with Panasonic Automotive to position the business for accelerated growth. This transaction builds on our proven track record of being a strategic partner to Japan’s leading conglomerates and leverages our strong sector and operational expertise. We have enormous respect for Panasonic Automotive’s reputation for quality and innovation and look forward to working with the Company’s talented team to unlock its full potential.”
Michael Reiss, Partner at Apollo, said, “Apollo has deep experience investing in and supporting the growth of automotive supply companies, and we look forward to helping drive Panasonic Automotive’s next phase of growth. Panasonic Automotive operates at an important intersection of the global automotive supply chain, and we are committed to maintaining the Company’s strong relationships with its customers and partners around the world as a key tier one supplier.”
Yuki Kusumi, Panasonic’s Group CEO, said, “Apollo is a partner that respects the values which have been cherished by Panasonic Automotive towards its customers, employees and business. Through this partnership, Panasonic Automotive could significantly grow as a global leading player. Continuing its role as a member of Panasonic Group, Panasonic Automotive will collaborate with the Group in its procurement and fundamental research to consistently contribute to the evolution of the Mobility Society as an important player.”
Masashi Nagayasu, Representative Director, CEO of Panasonic Automotive, said, “Panasonic Automotive possesses automotive knowledge and insight, strong customer relationships and great talent. Panasonic Automotive has the potential to win through this once-in-a-century transformational period. By taking advantage of our partnership with Apollo and realizing PAS’ full potential, we aim to become a top global player in the automotive electronics industry by providing added value to cars and the mobility experience with our customers.”
Subject to satisfaction of customary closing conditions including regulatory approvals, the transaction is expected to be completed by the end of the first quarter of 2025.
