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Automotive supplier Magna announces its powertrain unit will sell its global fluid pressure and controls (FP&C) business to Hanon Systems, a South Korea-based global supplier of thermal- and energy-management systems.
The sale price is about $1.23 billion before the assumption of net debt and pension liabilities at closing, Aurora, ON, Canada-based Magna says in a news release. The transaction is expected to close in first-quarter 2019, with about 4,200 employees across 10 facilities in North America, Europe and Asia transitioning to Hanon Systems.
Magna’s global FP&C business, which reported 2017 sales of $1.4 billion, specializes in the design, manufacture and supply of mechanical and electronic pumps, electronic cooling fans and other components.
With this transaction, Magna says its powertrain business will remain a full-system supplier of transmission and other driveline-related systems, including electrified versions.
“Hanon Systems has a strong track record in this area, and we are confident they will leverage this transaction to create long-term value for all of their stakeholders,” says Swamy Kotagiri, Magna chief technology officer and president-Magna Powertrain.
