Magna sells its fluid pressure and controls business for $1.23 billion
The sale to South Korea-based Hanon Systems reflects Magna’s focus on being a “full-system supplier of transmission and other driveline-related systems,” Magna said.
The powertrain unit of automotive parts supplier Magna International Inc. is selling its global fluid pressure and controls (FP&C) business to Hanon Systems, a South Korea-based global supplier of thermal and energy management systems for $1.23 billion.
Magna’s global FP&C business specializes in the design, manufacture and supply of mechanical and electronic pumps, electronic cooling fans, and other components. The business reported sales of $1.4 billion in 2017.
The business’s approximately 4,200 workers across 10 facilities in North America, Europe, and Asia will transition to Hanon Systems.
“With this transaction, Magna’s powertrain business will continue to focus on bringing power to the wheels as a full-system supplier of transmission and other driveline-related systems, including electrified versions,” Aurora, Ont.-based Magna said in a statement.
The transaction is expected to close in the first quarter of 2019.