Magna Acquisitions Build Automotive Pump Market Share
Magna International announced today two acquisitions of automotive manufacturers ixetic Verwaltungs GmbH and STT Technologies. Strengthening the company’s overall market share in the automotive pump supplier market, Magna’s transaction with both companies is expected to close in the fourth quarter of 2012.
ixetic Verwaltungs GmbH is a manufacturer of automotive vacuum, engine and transmission pumps. Its assets include two manufacturing plants in Germany, one in Bulgaria and one in China. Magna’s acquisition of ixetic will cost approximately €308 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."
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The acquisition of STT Technologies is a separate transaction entered into by Magna through a wholly owned subsidiary in a joint venture to purchase STT’s remaining 50 per cent interest. STT is a leading supplier of transmission and engine related oil pumps and serves the North American 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.
