October 02, 2012

Magna strengthens position in automotive pumps through two acquisitions

Magna International Inc. announced 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 €300-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 per cent of the outstanding shares of ixetic, on a cash-free and debt-free basis, is approximately €308-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 per cent 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.


Post a Comment

Related Posts Plugin...

back to top