PE firm Cerberus acquires Chrysler for $7.4bn

PE firm Cerberus acquires Chrysler for $7.4bn

Our Web Bureau/Agencies / Mumbai May 14, 2007

Private equity firm Cerberus is taking over majority interest in Chrysler Group and related financial services business for Euro 5.5 billion ($7.4 billion) from DaimlerChrysler.

Cerberus Capital Management gets an 80.1% stake in Chrysler Group and its related financial services business, according to an official release on the DaimlerChrysler website.

An affiliate of Cerberus will acquire 80.1% equity interest in the new company Chrysler Holding and DaimlerChrysler AG to retain 19.9%.

The terms of the deal include:

#Obligations for pensions and healthcare costs to be retained by Chrysler companies
#Transaction is expected to result in net cash outflow of Euro 0.5 billion for DaimlerChrysler
#DaimlerChrysler