Tier One automotive manufacturer Magna International Inc. has sealed two purchases for automotive pump producers, Ixatec Verwaltungs GmbH and STT Technologies Inc. The move resumes an aggressive rate of acquisitions in the automotive sector that Magna conducted through 2011, and suggests an opportunistic approach to that market as fears rise of a recession continue in the EU, or beyond. That year, it added to its extensive portfolio several plants from ThyssenKrupp produce front suspension systems and front- and rear-control arms, and several aluminum diecasting plants, including four in the EU from BDW Technologies.
Now, Magna is buying Ixetic for an estimated at $396.5 million, “cash-free and debt-free,” including estimated closing costs. Ixatec produces automotive vacuum, engine, and transmission pumps at two plants in Germany, one in Bulgaria, and one in China. "Ixetic's technologies, footprint and diverse customer base make it an excellent fit with our current capabilities in engine and transmission pumps," according to Magna CEO Don Walker. "Together, our global reach and capabilities position us to support our combined customers and their desire for more efficient powertrain solutions."
This transaction should by the end of the year, subject to EU anti-trust clearance, Magna stated.
Separately, Magna agreed to acquire the outstanding 50% of STT Technologies from its joint venture partner. The price was not announced.
STT Technologies, Concord, Ontario, operates as a subsidiary of Tesma International Inc. and SHW Automotive GmbH. It develops and supplies proprietary oil pumps for North American engine and transmission applications. Magna stated the acquisition would close this month.
"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," according to Walker.
Magna International has 296 manufacturing plants in 26 countries. It describes itself as “the most diversified global automotive supplier.” Its portfolio of operations design, develop and manufacture automotive systems, assemblies, and parts, including automotive interiors, seating, closures, body and chassis systems, vision systems, electronics, exterior systems, powertrain systems, and roof systems.