AURORA, Ontario, April 16, 2015 /PRNewswire/ --
Magna International Inc. (TSX: MG, NYSE: MGA) today
announced that it has signed an agreement to sell substantially all
of its interiors operations to Grupo
Antolin, a leading global supplier of automotive interior
systems. The purchase price for the operations, excluding certain
assets, is approximately US$525
million, subject to customary closing adjustments for the
value of net working capital and net debt at closing.
The transaction includes 36 manufacturing operations and
approximately 12,000 employees located in Europe, North
America and Asia. Full year
2014 total sales for the operations included in the agreement were
approximately US$2.4 billion. Magna's
seating business is not included in this transaction.
Don Walker, Magna's Chief
Executive Officer commented: "This transaction is consistent with
our strategy of refining our product portfolio to focus on certain
key areas of the vehicle. In addition, we are very pleased to have
reached an agreement with an established company that we believe
will be well-positioned globally in the interiors business. We are
confident that Grupo Antolin will
continue to serve our interiors customers and provide to our
interiors employees a solid foundation for the future."
The transaction is expected to close in the third quarter of
2015, subject to a number of customary conditions, including
antitrust approvals.
ABOUT MAGNA
We are a leading global automotive supplier with 313
manufacturing operations and 84 product development, engineering
and sales centres in 28 countries. We have approximately 131, 000
employees focused on delivering superior value to our customers
through innovative processes and World Class Manufacturing. Our
product capabilities include producing body, chassis, interior,
exterior, seating, powertrain, electronic, vision, closure and roof
systems and modules, as well as complete vehicle engineering and
contract manufacturing. Our common shares trade on the Toronto
Stock Exchange (MG) and the New York Stock Exchange (MGA). For
further information about Magna, visit our website at
http://www.magna.com.
FORWARD LOOKING STATEMENTS
This press release contains statements that constitute
"forward-looking statements" or "forward-looking information"
within the meaning of applicable securities legislation, including,
but not limited to, statements relating to the strategic benefits
expected to result from the transaction. The forward-looking
information in this document is presented for the purpose of
providing information about management's current expectations and
plans and such information may not be appropriate for other
purposes. Forward-looking statements may include financial and
other projections, as well as statements regarding our future
plans, objectives or economic performance, or the assumptions
underlying any of the foregoing, and other statements that are not
recitations of historical fact. We use words such as "may",
"would", "could", "should", "will", "likely", "expect",
"anticipate", "believe", "intend", "plan", "forecast", "outlook",
"project", "estimate" and similar expressions suggesting future
outcomes or events to identify forward-looking statements. Any such
forward-looking statements are based on information currently
available to us, and are based on assumptions and analyses made by
us in light of our experience and our perception of historical
trends, current conditions and expected future developments, as
well as other factors we believe are appropriate in the
circumstances. However, whether actual results and developments
will conform with our expectations and predictions is subject to a
number of risks, assumptions and uncertainties, many of which are
beyond our control, and the effects of which can be difficult to
predict, including, without limitation: the consummation of the
transaction, including required antitrust and other regulatory
approvals; the satisfaction or waiver of conditions to complete the
transaction; warranty or indemnity obligations to the purchaser in
relation to pre-closing liabilities; and other factors set out in
our Annual Information Form filed with securities commissions in
Canada and our annual report on
Form 40-F filed with the United States Securities and Exchange
Commission, and subsequent filings. In evaluating forward looking
statements, we caution readers not to place undue reliance on any
forward-looking statements and readers should specifically consider
the various factors which could cause actual events or results to
differ materially from those indicated by such forward-looking
statements. Unless otherwise required by applicable securities
laws, we do not intend, nor do we undertake any obligation, to
update or revise any forward-looking statements to reflect
subsequent information, events, results or circumstances or
otherwise.
CONTACT: Vince Galifi, Executive
Vice-President and Chief Financial Officer at +1-905-726-7100; or
Louis Tonelli, Vice-President,
Investor Relations at +1-905-726-7035.