Magna division acquires U.S. powertrain company

Tesma International, the Concord, ON-based manufacturer of automotive engine and transmission parts, has announced plans to buy U.S. automotive supplier Davis Industries. Terms of the deal were not disclosed but Davis had sales of about $129 million in 2003.
Tesma, a division of Magna International Inc., said the acquisition of privately-held Davis Industries may lift earnings per share by more than 10 cents annually, according to a report carried by Reuters. The main benefit of the deal is that it offers Tesma a platform to expand its business with foreign automakers in the U.S., as Davis has about 30% of sales in that category.