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.
We believe the architecture of Getrag’s product line is well-positioned to support current and future automotive powertrain configurations. In particular, Getrag is a leader in the growing market for dual-clutch transmissions (“DCTs”), which is expected to be one of the highest growth segments globally over the next decade.
Don Walker, Magna’s Chief Executive Officer, commented: “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.
The purchase price for 100% of the equity of Getrag is approximately €1.75 billion. This represents an enterprise value of approximately €2.45 billion less proportionate net debt and proportionate pension liabilities, which together are estimated to be approximately €700 million at closing.
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