Magna Buys Getrag for €1.75 Billion

Canada's Magna International Inc. has agreed to acquire German transmission maker Getrag Group for €1.75 billion and the assumption of about €700 million in debt and pension liabilities.

Magna expects the sale to close near the end of 2015. The two companies have been in discussions about a possible merger for years.

The deal includes 13 manufacturing and 10 engineering centers in nine countries. Getrag currently employs about 13,500 people in Europe, Asia and North America, who build transmissions for such carmakers as BMW, Daimler, Ford, Great Wall, Renault and Volvo.

Getrag's sales in 2014 were about €1.7 billion, excluding €1.6 billion generated through non-consolidated joint ventures. Magna predicts significant market growth for Getrag's fuel-saving dual-clutch technology.

Magna's own powertrain unit, which makes transmission components but not entire gearboxes, generates about €4.6 billion in annual revenue.