Pump assembled at Magna Powertrain plant in Bad Homburg, Germany.

Magna Divesting Fluid Pressure, Controls Business

The transaction is expected to close in first-quarter 2019, with about 4,200 employees across 10 facilities in North America, Europe and Asia transitioning to Hanon Systems.

Automotive supplier Magna announces its powertrain unit will sell its global fluid pressure and controls (FP&C) business to Hanon Systems, a South Korea-based global supplier of thermal- and energy-management systems.

The sale price is about $1.23 billion before the assumption of net debt and pension liabilities at closing, Aurora, ON, Canada-based Magna says in a news release. The transaction is expected to close in first-quarter 2019, with about 4,200 employees across 10 facilities in North America, Europe and Asia transitioning to Hanon Systems.

Magna’s global FP&C business, which reported 2017 sales of $1.4 billion, specializes in the design, manufacture and supply of mechanical and electronic pumps, electronic cooling fans and other components.

With this transaction, Magna says its powertrain business will remain a full-system supplier of transmission and other driveline-related systems, including electrified versions.

“Hanon Systems has a strong track record in this area, and we are confident they will leverage this transaction to create long-term value for all of their stakeholders,” says Swamy Kotagiri, Magna chief technology officer and president-Magna Powertrain.

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