Magna has announced that it has signed an agreement to acquire ixetic Verwaltungs GmbH, a supplier 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 revenue of approximately €300m (US$386m) and the purchase price payable by Magna for 100% of the outstanding shares of ixetic, on a cash-free and debt-free basis, is approximately €308m, including the effect of estimated closing adjustments.
The acquisition of ixetic is expected to close in Q4 2012, subject to obtaining European anti-trust approval.
According to Don Walker, Magna’s Chief Executive Officer: “ixetic’s technologies, footprint and diverse customer base make it an excellent fit with our current capabilities in engine and transmission pumps. Together, our global reach and capabilities position us to support our combined customers and their desire for more efficient powertrain solutions.”
In a second transaction, Magna, through one of its wholly-owned subsidiaries, has also signed an agreement with its joint-venture partner SHW AG to purchase the remaining 50% interest in Canada-based STT Technologies, 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. According to SHW, the sale price in euros will be “in the mid double-digit million range.”
Walker added: “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.”
