Magna sells Hungarian subsidiaries to Grupo Antolin

Car parts maker Magna has agreed to sell its car interior business to a Spanish company for $545 million, reported cbc.ca yesterday.

Ontario-based Magna announced the deal with Grupo Antolin in a release on Thursday. The unit in question had $2.4 billion in sales last year, and includes 36 manufacturing operations and approximately 12,000 employees located in Europe, North America and Asia.

Magna Automotive Hungary is a supplier of the Mercedes Kecskemét plant

The part of Magna's business that deals with seating is not included, Magna specified. "This transaction is consistent with our strategy of refining our product portfolio to focus on certain key areas of the vehicle," Magna CEO Don Walker said.

The deal is expected to close in the third quarter, subject to regulatory and shareholder approval, cbc.ca reported.

The deal also concerns Magna's two Hungarian subsidiaries:

The HUF 5.6 billion manufacturing plant of Magna Automotive Hungary Kft. was handed over in 2012 in Helvécia, near Kecskemét. The company manufactures interior upholstery and door covers for the Mercedes Kecskemét plant. The company is an employer of over 100 people.

Magna-owned and Esztergom-based Plastimat Kft. manufactures interior components for various Suzuki models. The company supplies door upholstery products for the Suzuki Swift, Suzuki Swift Sport and earlier the Suzuki SX4, Fiat Sedici, Suzuki Splash, Opel Agila models.

The two companies have not yet disclosed any information regarding the acquisition, although it has been confirmed by the press department of Magna Canada.

The deal is expected to close in the third quarter, subject to regulatory and shareholder approval, cbc.ca reported.