Ontario-based Magna has agreed to pay around $2.5bn to purchase the Getrag Group, a German supplier of automotive transmissions for companies such as Ford, BMW, Daimler, Renault, and Volvo.
Magna says Getrag is a leader in high-growth segments and has significant joint-venture relationships with Ford and two Chinese auto makers that provide significant potential for growth.
“As part of our ongoing product portfolio review, we have identified the expansion of our powertrain business as a strategic priority. Getrag is an excellent fit with this strategy,” said Don Walker, CEO of Magna.
“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 expects the deal to close near the end of 2015, subject to approvals and adjustments.
Getrag has about 13,500 employees across nine countries in Europe, Asia and North America.
