Magna International has inked a pact to purchase automotive transmissions supplier Getrag Group of Companies (Getrag) in a deal valued at 1.75bn Eur.
Likely to close by this year-end, the transaction for the 100% equity incorporates around 2.45billion Eur less proportionate net debt and proportionate pension liabilities, adding up to around 700million Eur at closing.
Backed by an experience spanning 80 years in transmission and technology, Getrag is credited with developing a product lineup that boasts transmission systems manual, automated-manual, dual-clutch and hybrid.
Magna CEO Don Walker said: "As part of our ongoing product portfolio review, we have identified the expansion of our powertrain business as a strategic priority. Getrag is an excellent fit with this strategy.
"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. Getrag's joint venture relationships also provide significant growth potential in China, the world's largest automotive market and the fastest growing market for DCTs."
Besides, Getrag has joint-ventures with Ford and Chinese carmakers - Jiangling and Dongfeng. It also caters to automotive giants such as BMW, Daimler, Renault, Volvo and Great Wall.
Having a workforce of 13,500, Getrag has 13 manufacturing and 10 engineering units across nine countries in Europe, Asia and North America.
The company posted consolidated sales worth 1.7billion Eur, exclusive of around 1.6billion Eur through its non-consolidated joint-ventures.
Magna International boasts 316 manufacturing units and 87 product development, engineering and sales facilities across 29 countries.
