Magna's (MGA) Seating Unit To Expand With VIZA Acquisition
Zacks Investment Research | Dec 19, 2018 08:08PM ET
Magna International Inc. (NYSE:MGA) is developing future-oriented vehicle seating solutions to cater to changing customer needs. Apart from developing solutions on its own, the company also signed an agreement to acquire VIZA Geca SL, a Spanish company that offers seat-structure expertise. Subject to regulatory approvals, the deal is expected to close by the end of first-quarter 2019.
With an experience of 73 years, VIZA’s product portfolio consists of patented floor-latch systems and foldable seats, which are manufactured at its four production hubs. In 2017, the company generated sales of €125 million. It has various automakers as its customers. The existing customers include Volkswagen (DE:VOWG_p) AG, Renault (PA:RENA) Nissan and PSA Group.
After closing the acquisition, VIZA’s production hubs at Spain, Czech Republic, Morocco and Mexico, along with its 1,100 workforces, will be added to Magna’s existing hubs. The addition will help the company’s seating business to gain a competitive edge and bolster its growth with the help of VIZA’s workforce expertise and hubs’ presence. Magna’s seating business has 50 manufacturing operations, and six research and development centers across the globe.
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