Korea-based Hanon Systems acquires Magna’s fluid controls business for US$1.23 billion
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Korean automotive supplier Hanon Systems announced it has signed an agreement with Ontario-based Magna International Inc. to acquire its global Fluid Pressure & Controls business in a transaction valued at approximately US$1.23 billion, before the assumption of net debt and pension liabilities at closing, and subject to customary closing adjustments for net working capital.
The business that will be acquired provides automakers thermal and energy management solutions that improve conventional and electrified powertrain efficiency, which aligns with the vision of Hanon Systems.
Products that are part of this business encompass a range of electronic and mechanical pumps for thermal systems and transmission systems, and brushless DC (BLDC) motor and electronic cooling fan technologies.
Hanon Systems expects this business will significantly contribute to the company’s focus on e-mobility by increasing future business in electrified solutions through its BLDC motor-based electronic cooling fan, electronic water pump and electronic transmission oil pump technologies.
The scope of the transaction includes 10 manufacturing and engineering facilities across Europe, North America (including Mexico) and Asia, and approximately 4,200 employees.
In 2017 alone, the business to be acquired generated total sales of US$1.4 billion. The acquisition is subject to regulatory and other approvals with completion expected in the first quarter of 2019.
Hanon Systems already operates six manufacturing facilities in Mexico, four of them, formerly part of Visteon Climate Control, are located in Ciudad Juarez. The remaining two are located one each in Monterrey and Queretaro respectively.