M&A Deal Summary

Cerberus Capital Management Acquires Chrysler Group

On May 14, 2007, asset manager Cerberus Capital Management acquired automotive company Chrysler Group from Daimler for 7.4B USD

Acquisition Highlights
  • This is Cerberus Capital Management’s 4th transaction in the Automotive sector.
  • This is Cerberus Capital Management’s 2nd largest (disclosed) transaction.
  • This is Cerberus Capital Management’s 17th transaction in the United States.
  • This is Cerberus Capital Management’s 4th transaction in Michigan.
Investment Fate
  • Chrysler Group went bankrupt in 2009.
  • Chrysler Group was sold to a strategic buyer in 2009.

M&A Deal Summary

Date 2007-05-14
Target Chrysler Group
Sector Automotive
Buyer(s) Cerberus Capital Management
Sellers(s) Daimler
Deal Type Divestiture
Deal Value 7.4B USD

Target

Chrysler Group

Auburn Hills, Michigan, United States
Chrysler Group LLC is an American automobile manufacturer headquartered in Auburn Hills, Michigan. It is a wholly owned subsidiary of the Italian multinational Fiat S.p.A.

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Buyer(S) 1

Buyer

Cerberus Capital Management

New York, New York, United States

Investor Investor Investor Investor Investor


Category Asset Manager
Founded 1992
PE ASSETS 55.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Cerberus Capital Management is a private investment firm that targets a wide range of global investments. Cerberus primarily looks for undervalued or distressed situations. Industry sectors of interest include aerospace and defense, apparel, automotive and industrial, building products, commercial services, consumer and retail, financial services, healthcare, manufacturing and distribution, paper, packaging, and printing, real estate, technology, telecommunications, transportation, and travel. In addition to private equity investing, Cerberus also provides corporate credit and acquires real estate. Cerberus was formed in 1992 by Steve Feinberg and is based in New York City.


DEAL STATS #
Overall 22 of 88
Sector (Automotive) 4 of 5
Type (Divestiture) 3 of 14
State (Michigan) 4 of 5
Country (United States) 17 of 64
Year (2007) 3 of 6
Size (of disclosed) 2 of 15
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-04-05 Remington

Madison, North Carolina, United States

Remington designs, produces and sells sporting goods products for the hunting and shooting sports markets, as well as military, government and law enforcement markets. Founded in 1816 in upstate New York, the Company is one of the US' oldest operating manufacturer.

Buy $370M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-06-20 Torex Retail Holdings

Dunstable, United Kingdom

Torex provides software, hardware and services that power many of the retailing operations including Tesco, Selfridges and Argos among a client list that features over 6000 customers.

Buy -

Seller(S) 1

SELLER

Daimler

Stuttgart, Germany

Category Company
Founded 1886
Sector Automotive
Employees289,643
Revenue 50.9B EUR (2022)
DESCRIPTION

Daimler with its businesses Mercedes-Benz Cars, Daimler Trucks, Daimler Financial Services, Mercedes-Benz Vans and Daimler Buses, is a global producer of passenger cars and heavy-and medium-duty trucks and buses. Daimler was founded in 1886 and is based in Stuttgart, Germany.


DEAL STATS #
Overall 4 of 7
Sector (Automotive) 2 of 3
Type (Divestiture) 4 of 5
State (Michigan) 2 of 2
Country (United States) 2 of 3
Year (2007) 1 of 1
Size (of disclosed) 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-03-01 Rolls-Royce Power Systems AG

Friedrichshafen, Germany

Rolls-Royce Power Systems AG is a supplier of off-highway diesel engines and complete drive systems for ships, heavy land and rail vehicles, industrial applications and decentralized power generation plants.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2009-05-19 Tesla

Austin, Texas, United States

Tesla designs, manufactures and sells electric cars, batteries, and solar related equipment and systems to consumers, businesses, and municipalities. Tesla was formed in 2003 and is based in Palo Alto, California.

Buy -