Auto supplier Magna buys transmission maker for $1.9B – USA Today – USA TODAY
One of leading suppliers to the automotive industry, Magna International, said Thursday it has reached an agreement to purchase one of the world’s largest auto transmission makers, Getrag, for $1.9 billion.
Canada-based Magna’s decision to acquire the German transmission manufacturer comes on the heels of several other high-profile mergers among automotive suppliers as automakers look for ways fill out product lines and acquire technology that will be in demand in the coming years.
Getrag makes a range of transmission systems which include manual, automated-manual, dual-clutch, hybrid and other advanced systems.
“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,” Magna CEO Don Walker said in a statement.
Getrag was founded in 1935 by Hermann Hagenmeyer and is based near Stuttgart, Germany.
It has annual sales of about $1.85 billion with 13,500 employees in 23 locations, including an engineering center in Sterling Heights that employs 55.
“We join forces with a reliable, experienced and well-performing global company. This move will bring both sides extraordinary benefits,” Mihir Kotecha, CEO of Getrag, said in a statement.
Kotecha said the development of electric vehicles will reshape the automotive industry over the coming years and will require suppliers to invest heavily in the development of new engines and transmissions.
“The combined businesses will be able to fully participate in the technology changes the car industry is facing,” Kotecha said.
The companies said they expect the acquisition to close by the end of this year.
Magna, based near Toronto, was the world’s second largest auto supplier with $36 billion in annual sales in 2014, according to Automotive News.
The company employs a staff of about 300 sales, marketing and engineering personnel in Troy. The company makes a wide range of automotive parts and systems including body, chassis, interiors, brakes and powertrain components.
Earlier this week Auburn Hills-based BorgWarner announced plans to acquire Pendleton, Ind.-based Remy International Inc. for about $950 million.
German auto supplier ZF Group completed its $12.4 billion acquisition of Livonia-based TRW Automotive in May, making it the world’s second largest auto supplier behind Robert Bosch.