Investment firm Kohlberg Kravis Roberts & Co. won European Union approval yesterday for its billion-dollar acquisition of FL Selenia SpA, which claims to be Europes largest independent marketer of automotive lubricants. KKR announced last month an agreement to buy Selenia from another New York-based private equity firm, Vestar Capital Partners, for 835 million (U.S. $1 billion).
Selenia Chief Executive Officer Aldino Bellazzini told Lube Report the deal will not affect the companys daily operations but should provide greater resources for an aggressive growth strategy that leans heavily on acquisition.
Basically we are changing hands from one investment firm to another, so it will not change us, Bellazzini said. The one advantage is that KKR has a much better [financial] position. KKR has invested $130 billion since 1976, while Vestar has invested $17 billion since 1988.
Selenia, which is based in Turin, Italy, had sales revenue of 550 million in 2004. It markets lubricants for passenger cars, trucks, farm equipment and motorcycles through tie-ins with manufacturers such as Fiat, Case New Holland and Piaggio.