Magna International Inc has announced that it has signed an agreement to acquire the Getrag Group of Companies, one of the world’s largest suppliers of automotive transmissions. The purchase price for 100% of the equity of Getrag was stated as being around €1.75 billion.
Getrag has an 80-year history in transmissions and offers a range of transmission systems which include manual, automated-manual, dual-clutch, hybrid and other advanced systems.
In addition to its wholly-owned operations, Getrag has significant joint-venture relationships with Ford, as well as Chinese auto makers Jiangling and Dongfeng. Other Getrag customers include BMW, Daimler, Renault, Volvo and Great Wall.
Including joint-venture locations, Getrag has approximately 13,500 employees and operates 13 manufacturing and ten engineering centres in nine countries in Europe, Asia and North America. Getrag’s 2014 consolidated sales were approximately €1.7 billion, which excludes approximately €1.6 billion in sales generated in its non-consolidated joint-ventures.
“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,” stated Don Walker, Magna’s Chief Executive Officer.
“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. Getrag’s joint venture relationships also provide significant growth potential in China, the world’s largest automotive market and the fastest growing market for DCTs. Lastly, Getrag has a highly capable and experienced workforce, including deep powertrain engineering expertise,” added Walker.
The transaction is expected to close near the end of 2015, subject to a number of conditions including obtaining all necessary regulatory approvals.