. Magna to purchase roof systems business
from Porsche
AURORA, ON - Magna
International Inc. announced today that it has signed an agreement
with Dr. Ing. h.c. F. Porsche AG pursuant to which Magna will acquire
CTS Fahrzeug-Dachsysteme GmbH, Bietigheim-Bissingen ("CTS"), based
in Germany. CTS is one of the world's leading manufacturers of roof
systems for the automotive industry.
The purchase price
is approximately euro 170 million and will be satisfied in cash.
Closing of the transaction is subject to obtaining all necessary
regulatory approvals.
Siegfried Wolf, co-Chief
Executive Officer of Magna, stated: "CTS is one of the technology
leaders in roof systems, a product area that we see as having good
growth potential. Together with our current capabilities, we intend
to leverage this technology to grow in roof systems both by broadening
the current CTS customer base and by expanding geographically."
Dr. Wendelin Wiedeking,
Porsche AG CEO, stated: "Both partners will benefit from this decision.
Porsche can concentrate fully on its core competencies such as development,
production and sales of complete vehicles, while with Magna, CTS
now has a partner which allows potential for new growth. As roof
systems are particularly important for us, the owner change ensures
that Porsche will continue to be able to obtain the relevant top-quality
systems."
CTS produces
softtops, hardtops and modular retractable hardtops. In
addition to Porsche, its customers include DaimlerChrysler,
Ferrari, Peugeot and General Motors. In 2004, CTS reported
sales of approximately euro 400 million. CTS has six facilities
in Europe and two facilities in North America, with approximately
1,100 employees.
