Hanon Systems to Acquire Global Fluid Pressure & Controls Business of Magna International Inc.

DAEJEON, Korea, Sept. 20, 2018 /PRNewswire/ -- Global automotive supplier Hanon Systems (KS: 018880) today announced it has signed an agreement with Magna International Inc. to acquire its global Fluid Pressure & Controls business in a transaction valued at approximately $1.23 billion, before the assumption of net debt and pension liabilities at closing, and subject to customary closing adjustments for net working capital.

The business to be acquired provides automakers thermal and energy management solutions that improve conventional and electrified powertrain efficiency, which aligns with the vision of Hanon Systems. Products that are part of this business encompass a range of electronic and mechanical pumps for thermal systems and transmission systems, and brushless DC (BLDC) motor and electronic cooling fan technologies. Hanon Systems expects this business will significantly contribute to the company's focus on e-mobility by increasing future business in electrified solutions through its BLDC motor-based electronic cooling fan, electronic water pump and electronic transmission oil pump technologies.

The scope of the transaction includes 10 manufacturing and engineering facilities across Europe, North America and Asia, and approximately 4,200 employees. In 2017, the business to be acquired generated total sales of $1.4 billion. The acquisition is subject to regulatory and other approvals with completion expected in the first quarter of 2019.

Hanon Systems Chairman of the Board and Chairman of Hahn & Company, the company's majority shareholder, Yeo-Eul Yoon said, this acquisition will reinforce the company's existing offering and strengthen the value proposition it brings to global automakers as a leading full-line provider of thermal and energy management system solutions.

"Magna's global Fluid Pressure & Controls business has a strong reputation and solid customer base," noted Y.E. Yoon. "This business is a strategic fit to enhance our company's capability and competitive position with leading technology for conventional and electrified vehicles. With this acquisition, Hanon Systems is in a better position to satisfy the increasing demands of automakers for electrified thermal and energy management solutions. At the same time, it will further diversify our global customer base, and broaden our global reach and talent base to better serve customers where they operate to deliver even greater value to our stakeholders."

At year-end 2017, Hanon Systems reported total sales of approximately $4.9 billion. The transaction offers Hanon Systems the opportunity to accelerate growth, and the potential to generate long-term margin improvement through economies of scale and operational synergies.

Advising Hanon Systems on the transaction is Evercore.

About Hanon Systems
Hanon Systems is a full-line supplier of automotive thermal and energy management solutions for conventional and electrified vehicles. Its offering includes a wide range of solutions in the areas of heating ventilation and air conditioning; powertrain cooling; compressor; fluid transport; and thermal and emissions. The company currently employs more than 16,500 people across 20 countries at its 40 manufacturing and 18 engineering sites. To learn more, visit hanonsystems.com.

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SOURCE Hanon Systems