Magna Strengthens Position In Automotive Pumps Through Two Acquisitions
Magna International Inc. (TSX: MG; NYSE: MGA) announced today that it has signed an agreement to acquire ixetic Verwaltungs GmbH ("ixetic"), a manufacturer of automotive vacuum, engine and transmission pumps with two manufacturing facilities in Germany, and one in each of Bulgaria and China. ixetic had full year 2011 total sales of approximately EUR300 million.
"ixetic's technologies, footprint and diverse customer base make it an excellent fit with our current capabilities in engine and transmission pumps" stated Don Walker, Magna's Chief Executive Officer. "Together, our global reach and capabilities position us to support our combined customers and their desire for more efficient powertrain solutions."
The purchase price payable for 100% of the outstanding shares of ixetic, on a cash-free and debt-free basis, is approximately EUR308 million, including the effect of the estimated closing adjustments.
This transaction is expected to close in the fourth quarter of 2012, subject to obtaining European anti-trust approval.
In a separate transaction, Magna, through one of its wholly owned subsidiaries, has signed an agreement with its joint venture partner to purchase the remaining 50% interest in STT Technologies Inc., a leading supplier of transmission and engine related oil pumps serving the North American automotive market.
This transaction is expected to close in October, 2012.
"With these transactions, Magna's capabilities in this product area will be strengthened and its position as a leading automotive pump supplier capable of satisfying the global requirements of OEMs will immediately be enhanced," said Don Walker.
We are the most diversified global automotive supplier. We design, develop and manufacture technologically advanced automotive systems, assemblies, modules and components, and engineer and assemble complete vehicles, primarily for sale to original equipment manufacturers
("OEMs") of cars and light trucks. Our capabilities include the design, engineering, testing and manufacture of automotive interior systems; seating systems; closure systems; body and chassis systems; vision systems; electronic systems; exterior systems; powertrain systems; roof systems; hybrid and electric vehicles/systems; as well as complete vehicle engineering and assembly.