KKR & Co. is contemplating a sale of Marelli Corp.’s suspension techniques enterprise because the personal fairness agency shifts the main focus of the auto provider towards extra worthwhile merchandise, based on individuals aware of the matter.

The buyout agency is working with an adviser on the potential disposal, which has drawn preliminary curiosity from personal fairness and strategic suitors, the individuals mentioned. Marelli’s suspension arm generates annual income of about 900 million euros ($1.1 billion), the individuals mentioned, asking to not be recognized discussing confidential data.

Marelli manufactures the whole lot from superior driver-assistance techniques to cabin temperature parts. Whereas the monetary efficiency of its suspension enterprise has recovered this yr, KKR is searching for to streamline Marelli’s portfolio and concentrate on higher-end technology products, resembling electrification and lighting, the individuals mentioned.

Deliberations are within the early phases, and KKR may nonetheless determine to maintain the enterprise, based on the individuals. A consultant for KKR declined to remark, whereas a spokesperson for Marelli mentioned it was the corporate’s coverage to not touch upon market hypothesis.

Marelli was fashioned in 2019, after KKR accomplished its acquisition of Magneti Marelli from Fiat Chrysler Vehicles NV and mixed it with present portfolio firm Calsonic Kansei. The corporate operates about 170 amenities and analysis and improvement facilities throughout Europe, Africa, the Americas and Asia Pacific, based on its web site.

A sale of the enterprise would add to $21 billion price of transactions involving auto elements and tools corporations this yr, based on knowledge compiled by Bloomberg. That’s up by greater than three quarters on the identical interval in 2020.

Marelli ranks No. 14 on the Automotive News list of the 100 top global suppliers, with gross sales to automakers of $14.9 billion in fiscal 2019.