Apollo Funds, a private equity firm, has agreed to purchase a majority stake in supplier Panasonic Automotive Systems for 311 billion yen ($2 billion), according to a press release late last month.
Under the deal, Panasonic Holdings, the company’s current owner, will maintain a minority stake in Panasonic Automotive, which will continue its strategic relationship with the Panasonic Group. (The Panasonic Group includes Panasonic Holdings, the holding company, eight operating companies and affiliates within Japan and overseas, according to a corporate website.)
The companies expect the transaction to close by the end of the first quarter of 2025.
“Through this partnership, Panasonic Automotive could significantly grow as a global leading player,” Panasonic Group CEO Yuki Kusumi said in the release. “Continuing its role as a member of Panasonic Group, Panasonic Automotive will collaborate with the Group in its procurement and fundamental research.”
Apollo aims to help support the next phase of growth for Panasonic Automotive, a key link in the global auto supply chain, according to Michael Reiss, a partner at Apollo. That will still involve maintaining the company’s relationships with customers and partners, he said in the announcement.
Other suppliers, including Continental and Goodyear, are retooling their strategies and operations as the auto industry transitions to electric and software-defined vehicles. Panasonic Automotive offers vision and sensing technology, integrated cockpit systems and other in-vehicle electronics for automotive applications, including autonomous vehicles, SDVs and connected services.
“Panasonic Automotive has the potential to win through this once-in-a-century transformational period,” Masashi Nagayasu, representative director and CEO of Panasonic Automotive, said in the release. “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.”
