Magna to Acquire ixetic Verwaltungs for EUR308 million

   By Saabira Chaudhuri 
 

Magna International Inc. (MGA, MG.T) has agreed to acquire ixetic Verwaltungs GmbH, a manufacturer of automotive vacuum, engine and transmission pumps, for about 308 million euros ($397 million), as the automotive supplier looks to expand its footprint.

"Ixetic's technologies, footprint and diverse customer base make it an excellent fit with our current capabilities in engine and transmission pumps," Magna Chief Executive Don Walker said. "Together, our global reach and capabilities position us to support our combined customers and their desire for more efficient powertrain solutions."

Ixetic has two manufacturing facilities in Germany, and one in each of Bulgaria and China. It had total sales of about EUR300 million last year.

The deal is expected to close in the fourth quarter.

Separately, Magna said it has agreed to buy the remaining 50% stake it doesn't already own in STT Technologies Inc., a supplier of transmission and engine-related oil pumps.

That transaction is expected to close in October.

Shares of Magna closed at $43.26 Friday and were inactive premarket. The stock is up 31% in the past 12 months.

Write to Saabira Chaudhuri at [e-mail]

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