Magna International has expanded its engine and transmission pump business with the acquisition of Germany’s Ixetic Verwaltungs, a manufacturer of automotive vacuum, engine and transmission pumps.
Magna is paying EUR308m (US$398m) to buy the company which has two manufacturing facilities in Germany and one each in Bulgaria and China.
The deal is expected to be completed by the end of the year. Ixetic had 2011 sales of EUR300m; it has 1,400 employees. Customers include BMW, Daimler, Volkswagen, Toyota and Land Rover.
“Ixetic’s technologies, footprint and diverse customer base make it an excellent fit with our current capabilities in engine and transmission pumps,” said Don Walker, Magna’s CEO.
In a separate transaction, Magna has signed an agreement with its joint venture partner to purchase the remaining 50% interest in STT Technologies, a North American supplier of transmission and engine related oil pumps. This transaction is expected to close before the end of this month. Financial details have not been revealed.
Magna has previously said that it wants to invest in companies with advanced technologies. The company is reported to be sitting on a $1.4bn war chest and said in August that it expects to make more acquisitions in Europe if the downturn continues there.