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Magna International (MGA) to Acquire Stadco Automotive

Magna International Inc.MGA has recently inked an agreement to acquire Stadco Automotive Ltd. The transaction is expected to close in the fourth quarter of 2015, subject to customary conditions and regulatory approvals.

Magna International believes that this acquisition will complement its capabilities in the body and chassis market. In addition, the buyout will expand its operating unit, Cosma International's geographic presence and global customer base. Cosma International is one of the leading global automotive suppliers, which offers a wide range of body, chassis and engineering solutions to original equipment manufacturers ("OEM") globally.

Stadco is an independent Tier 1 Body-In-White supplier which is based in the U.K. It supplies steel and aluminum stampings along with complex vehicle assemblies to customers, including Jaguar Land Rover, Ford Motor Co. F and General Motors Company GM . The company has four manufacturing facilities in the U.K and one in Germany. It employs around 1,400 workers.

Magna International is expanding its business through acquisitions and collaborations. In Sep 2015, the company signed a partnership agreement with Argus Cyber Security Ltd. to provide vehicle security solutions. In Aug 2015, the company entered into a joint venture with Kinderhook Industries to manage the Bestop operations and pursue aftermarket growth opportunities.

Magna International, based in Aurora, Canada, is a leading manufacturer and supplier of automotive components. The company designs, develops and manufactures automotive systems, assemblies, modules and components, apart from engineering and assembling complete vehicles, primarily for sale to OEMs of cars and light trucks.

Magna International currently carries a Zacks Rank #3 (Hold). Nissan Motor Co. Ltd. NSANY , with a Zacks Rank #2 (Buy), is a better-ranked automobile stock.

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FORD MOTOR CO (F): Free Stock Analysis Report

NISSAN ADR (NSANY): Free Stock Analysis Report

MAGNA INTL CL A (MGA): Free Stock Analysis Report

GENERAL MOTORS (GM): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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