Magna Sells Fluid Controls Unit to S. Korea’s Hanon Systems

Magna International Inc. has agreed to sell its Fluid Pressure and Controls operations to South Korea’s Hanon Systems for $1.2 billion, before the assumption of debt and pension liabilities.

Regulatory approvals are expected to be completed in the first quarter of 2019. Hanon says the purchase will expand its capabilities in supporting electrified powertrains.

The business unit, a part of Magna’s Powertrain division, sells about $1.4 billion worth of pumps, cooling fans and other components to multiple carmakers worldwide. The sale includes 10 facilities and covers 4,200 employees in Asia, Europe and North America.

Hanon Systems, a unit of Hahn & Co., supplies $4.9 billion worth of automotive climate control, air coolers and energy management systems per year.