Automotive supplier Magna International Inc. will add to its strength in automotive pumps with two transactions, one in Europe and one in Canada.
The Aurora, Ont.-based company signed an agreement to acquire ixetic Verwaltungs GmbH, a German manufacturer of automotive vacuum, engine and transmission pumps, for $480 million.
The company, with two manufacturing facilities in Germany, and one in each of Bulgaria and China, had 2011 sales of approximately $380 million.
The transaction is to close in the fourth quarter of 2012, subject to European anti-trust approval.
Magna, through wholly owned subsidiary Magna Powertrain Inc., is also buying the 50 per cent interest in STT Technologies Inc. owned by its joint venture partner SHW Automotive GmbH.
STT Technologies, based in Concord, Ont., is a supplier to the North American market of transmission and engine related oil pumps.
Financial details of this deal have not been released.
"With these transactions, Magna's capabilities in this product area will be strengthened and its position as a leading automotive pump supplier capable of satisfying the global requirements of OEMs will immediately be enhanced," said Magna CEO Don Walker.