01 October 2012

Magna Strengthens Position In Automotive Pumps Through Two Acquisitions

Aurora, ON - 01 October 2012 (PRNewswire) - Magna International Inc. 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 €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% 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% 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. 

Magna has approximately 115,000 employees in 296 manufacturing operations and 88 product development, engineering and sales centres in 26 countries. 

Source: Magna