OTTAWA (dpa-AFX) - Automotive supplier Magna International Inc. (MG.TO, MGA) announced Monday that it has signed a purchase agreement to acquire the BÖCO Group of Companies, an automotive supplier of latches, hinges and strikers. Subject to regulatory approval, the transaction is expected to close in the third quarter of 2016.
Magna expects the acquisition would help bolster its product portfolio and engineering capabilities in key regions.
Following the deal closure, BÖCO's two facilities located in Wuppertal, Germany, and Tianjin, China, together with its approximately 450 employees, will be integrated into Magna's operating unit Magna Closures.
The company noted that BÖCO has annual sales of more than 100 million euros and its customers include the BMW Group, Daimler and Audi.
John O'Hara, President, Magna Closures, said, 'BÖCO's product and processing know-how and engineering strength also provides additional global growth opportunities for us going forward, particularly with automakers based in Germany.'
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