|Seems there has been a lot of acquisitions in the Auto parts related sector of late.|
Magna International to Buy Getrag of Germany for $1.9 Billion
By CHAD BRAYJULY 16, 2015
LONDON — The Canadian auto parts maker Magna International said on Thursday that it had agreed to acquire one of the world’s largest suppliers of automotive transmissions, the Getrag Group, for 1.75 billion euros, or about $1.9 billion.
The deal will bolster Magna’s powertrain and transmission business and increase its growth potential in the Chinese market.
Getrag is a joint venture partner with Ford and its customers include BMW, Daimler, Renault and Volvo. It also has joint venture relationships with Chinese automakers Jiangling and Dongfeng.
“As part of our ongoing product portfolio review, we have identified the expansion of our powertrain business as a strategic priority,” Donald J. Walker, the Magna chief executive, said in a news release.
“Getrag is an excellent fit with this strategy,” Mr. Walker said. “Getrag is a technology leader in a product area that we believe is well positioned to benefit from industry trends that are driving increased vehicle fuel-efficiency and reduced emissions.”
The transaction is expected to close near the end of 2015 and is subject to regulatory approval.
Founded in 1935, Getrag, based in Untergruppenbach, Germany, employs about 13,500 people at 13 manufacturing plants and 10 engineering centers in nine countries in Europe, Asia and North America. In 2014, the company posted €1.7 billion in sales, excluding €1.6 billion in sales from its joint ventures last year.
“We join forces with a reliable, experienced and well-performing global company,” Mihir Kotecha, the Getrag chief executive, said in a news release. “This move will bring both sides extraordinary benefits.”
The deal valued Getrag at about €2.45 billion, including debt and pension liabilities.
Magna, based in Aurora, Ontario, employs about 133,000 people at 316 manufacturing plant and 87 product development, engineering and sales centers in 29 countries. The company reported sales of $36.6 billion in 2014.