AURORA, Ontario, Jan. 5, 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 statements may include financial and other projections, as well as statements regarding our future plans, objectives or economic performance, or the assumptions underlying any of the foregoing, and other statements that are not recitations of historical fact. We use words such as "may", "would", "could", "should", "will", "likely", "expect", "anticipate", "believe", "intend", "plan", "forecast", "outlook", "project", "estimate" and similar expressions suggesting future outcomes or events to identify forward-looking statements. Any such forward-looking statements are based on information currently available to us, and are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe 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 statements, we caution readers not to place undue reliance on any 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.
For further information: Tracy Fuerst, Director, Corporate Communications & Media Relations, (248) 631-5396, Tracy.fuerst@magna.com
