TORONTO — Martinrea International Inc. has signed a US$19.5-million deal with Metalsa S.A. de C.V. to buy a unit of the Mexican company that makes structural components for passenger cars.
Under the agreement, the Canadian auto parts company will acquire six plants around the world with approximately 2,000 employees.
The deal includes a large facility in Bergneustadt, Germany, as well as a plant in San Luis Potosi, Mexico, a facility in Tuscaloosa, Ala., and two in China.
Martinrea will also acquire a facility in South Africa under the transaction.
The company says the largest customers of the business being acquired are Daimler, BMW and Volkswagen.
The assets to be acquired are expected to generate about C$400 million in sales in 2020, Martinrea says.
This report by The Canadian Press was first published Dec. 19. 2019.
Companies in this story: (TSX:MRE)
The Canadian Press