NEWS

Magna to buy U.K. Car-Parts Maker Stadco Automotive

Saturday, Oct 03, 2015

Magna International Inc. on Friday said it would buy U.K.-based car-parts maker Stadco Automotive Ltd., expanding the Canadian company’s global presence with the addition of five manufacturing plants.

Terms of the purchase weren’t disclosed.

Stadco, which has 1,400 employees, makes and supplies stamped steel and aluminum parts and vehicle assemblies from four plants in the U.K. and one in Germany.

The acquisition is Magna’s second since mid-July, when it agreed to buy German automotive-transmission provider Getrag International GmbH in a $1.9 billion deal. That deal came amid a buying binge among parts suppliers looking to enhance their global presence and offer a wider set of products to auto makers.

Magna said Stadco, which supplies customers such as Jaguar Land Rover, Ford Motor Co. and General Motors., complements the body and chassis operations of its Cosma International operating unit.

The purchase is expected to close in the fourth quarter.

Auto-parts giant Magna, with 287 manufacturing plants in 29 countries, has guided for annual sales of between $30.9 billion and $32.6 billion.

 

wsj.com