July 27, 2017 / 7:12 AM / 3 years ago

KKR to set up auto parts JV with South Korea's LS Group, buy materials business

SEOUL (Reuters) - U.S. buyout firm KKR & Co (KKR.N) has agreed to set up an auto parts joint venture with South Korea’s LS Group and buy LS’ materials business - a deal that follows its purchase of Nissan Motor (7201.T) supplier Calsonic Kansei last year.

KKR’s investment implies a combined enterprise value of the businesses of about 1.05 trillion won ($924 million).

KKR will create the joint venture with LS for LS Automotive, an auto parts electronics maker, and will additionally buy an affiliate that makes copper foils for large capacity lithium-ion batteries used in electric vehicles.

KKR will own a 47 percent stake in the joint venture for LS Automotive, which makes switches, interior lamps and other auto parts for Hyundai Motor (005380.KS) and other global automakers as well as top-tier suppliers like Continental (CONG.DE) and Delphi.

It will make its proposed investment from its US$9.3 billion Asian Fund III.

In November, KKR & Co said it would buy Calsonic Kansei for up to 498.3 billion yen ($4.5 billion) in its biggest deal in Japan.

Reporting by Hyunjoo Jin; editing by Edwina Gibbs and Jason Neely

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