Magna International Inc said that its Cosma International division has acquired a Brazilian vehicle framework manufacturer that supplies several of the world's largest auto makers.
The Ontario based auto parts giant said that Cosma has closed a deal with ThyssenKrupp Automotive Systems to take over its Brazilian operations, four plants and about 770 employees.
Magna didn't disclose a price paid but said the ThyssenKrupp operation had sales of about USD 250 million in its fiscal year ended September 30th 2011.
ThyssenKrupp Automotive Systems Industrial do Brasil Ltda produces and assembles chassis (internal framework) components and modules for several Brazilian automotive customers. Current production customers include Ford, Fiat, Renault Nissan and Honda.
Cosma said that the acquisition expands its global footprint and positions it to become a leading metal-forming and chassis supplier in South America.
Mr Horst Prelog president of Cosma International said that "The acquisition represents a significant commitment to the South American automotive market and our global OEM customers."
Magna already has nine manufacturing plants and two research and development spaces in South America, with about 3,650 employees.
Cosma International manufactures metal body systems, components, assemblies and modules including complete vehicle frames and chassis systems. It has 47 manufacturing facilities and 25 product development and engineering centers worldwide.
In November 2011, Cosma said it would acquire BDW technologies group and its four European facilities that supply several auto makers, including Volkswagen.
Magna is seeing its business rebound after a slump during and after the recession, as demand for vehicles picks up. In its most recent quarter vehicle assembly sales increased 28% and volumes were up 55% from 2010.
However, its Cosma division is also under fire from the US Justice Department on an antitrust matter in the auto tooling industry. It is being investigated as part of a broader crackdown into anti-competitive activities in the auto parts industry.
Magna is Canada's largest auto parts manufacturer and one of the largest in the world. It primarily supplies auto makers in North America and Europe.
(Sourced from www.ctv.ca)
