AURORA, ON, Jan. 4, 2016 /PRNewswire/ - Magna International
Inc. announced today that it has completed its acquisition of the
GETRAG Group of Companies ("GETRAG"), one of the world's leading
independent suppliers of automotive transmissions.
GETRAG's established product line complements Magna Powertrain's
expertise in engineering and manufacturing and provides new
opportunities for growth. In particular, GETRAG is a leader
in the market for dual-clutch transmissions ("DCTs"), a segment
which is expected to experience high growth globally over the next
decade.
"Expanding our business to provide complete powertrain solutions
has been a strategic priority for us," said Jake Hirsch, Magna Powertrain President.
"We believe that GETRAG is an excellent fit in terms of product,
technology, footprint, customers and people and look forward to
working together to continue building on their history of
innovation."
GETRAG brings an 80-year history in transmissions and technology
leadership, offering a range of transmission systems including
manual, automated-manual, dual-clutch, hybrid and other advanced
systems. Beyond enhancing Magna's powertrain systems
capabilities the combined product portfolio will enhance vertical
integration opportunities.
"We welcome GETRAG and its approximately 14,000 dedicated
employees to the Magna family of companies," said Magna CEO
Don Walker. "With the completion of
this acquisition, we continue to demonstrate our focus on a refined
portfolio of strategic automotive product lines."
"Under Magna's ownership, GETRAG is well positioned to become
even stronger," said GETRAG CEO Mihir
Kotecha. "I expect that the combined businesses will
be even better positioned to realize opportunities being created in
the powertrain segment by the need for improved fuel efficiency and
reduced carbon emissions."
About Magna International
We are a leading global
automotive supplier with 305 manufacturing operations and 95
product development, engineering and sales centres in 29 countries.
We have over 139,000 employees focused on delivering superior value
to our customers through innovative products and processes, and
World Class Manufacturing. Our product capabilities include
producing body, chassis, exterior, seating, powertrain, electronic,
vision, closure and roof systems and modules, as well as complete
vehicle engineering and contract manufacturing. Our Common Shares
trade on the Toronto Stock Exchange (MG) and the New York Stock
Exchange (MGA). For further information about Magna, visit our
website at www.magna.com.
FORWARD LOOKING STATEMENTS
This press release contains
statements that constitute "forward-looking statements" or
"forward-looking information" within the meaning of applicable
securities legislation, including, but not limited to, statements
relating to: strategic benefits expected to result from the
acquisition; anticipated growth of the DCT market and our ability
to capitalize on such expected growth; and our ability to benefit
from industry trends related to increased fuel efficiency and
reduced emissions. The forward-looking information in this document
is presented for the purpose of providing information about
management's current expectations and plans and such information
may not be appropriate for other purposes. Forward-looking
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our perception of historical trends, current conditions and
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are appropriate in the circumstances. However, whether actual
results and developments will conform with our expectations and
predictions is subject to a number of risks, assumptions and
uncertainties, many of which are beyond our control, and the
effects of which can be difficult to predict, including, without
limitation: our ability to successfully identify, complete and
integrate acquisitions or achieve anticipated synergies; our
ability to conduct appropriate due diligence on acquisition
targets; an increase in our risk profile as a result of completed
acquisitions; risks of conducting business in foreign markets,
including China, India, Russia, Eastern
Europe, Thailand,
Brazil, Argentina and other nontraditional markets for
us; ongoing pricing pressures, including our ability to offset
price concessions demanded by our customers; our ability to
consistently develop innovative products or processes; warranty and
recall costs; pension liabilities; the impact of economic or
political conditions on consumer confidence, consumer demand for
vehicles and vehicle production; fluctuations in relative currency
values; restructuring, downsizing and/or other significant
non-recurring costs; continued underperformance of one or more of
our operating Divisions; our ability to successfully launch
material new or takeover business; shifts in market share away from
our top customers; inability to grow our business with OEMs; shifts
in market shares among vehicles or vehicle segments, or shifts away
from vehicles on which we have significant content; shutdown of our
or our customers' or subsuppliers' production facilities due to a
labour disruption; scheduled shutdowns of our customers' production
facilities (typically in the third and fourth quarters of each
calendar year); the termination or non-renewal by our customers of
any material production purchase order; our ability to successfully
compete with other automotive suppliers; reduction in outsourcing
by our customers or the loss of a material production or assembly
program; impairment charges related to goodwill and long-lived
assets; exposure to, and ability to offset, volatile commodities
prices; risk of production disruptions due to natural disasters or
other catastrophic events; a prolonged disruption in the supply of
components to us from our suppliers; the security and reliability
of our IT systems; legal claims and/or regulatory actions against
us, including the ongoing antitrust investigations being conducted
by German and Brazilian authorities and any proceedings that may
arise out of the internal global review initiated by us focused on
anti-trust risk; changes in our mix of earnings between
jurisdictions with lower tax rates and those with higher tax rates,
as well as our ability to fully benefit tax losses; other potential
tax exposures; changes in credit ratings assigned to us; changes in
laws and governmental regulations; costs associated with compliance
with environmental laws and regulations; liquidity risks as a
result of an unanticipated deterioration of economic conditions;
our ability to achieve future investment returns that equal or
exceed past returns; the unpredictability of, and fluctuation in,
the trading price of our Common Shares; and other factors set out
in our Annual Information Form filed with securities commissions in
Canada and our annual report on
Form 40-F filed with the United States Securities and Exchange
Commission, and subsequent filings. In evaluating forward looking
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forward-looking statements and readers should specifically consider
the various factors which could cause actual events or results to
differ materially from those indicated by such forward-looking
statements. Unless otherwise required by applicable securities
laws, we do not intend, nor do we undertake any obligation, to
update or revise any forward-looking statements to reflect
subsequent information, events, results or circumstances or
otherwise.
SOURCE Magna International Inc.