Magna Acquires Automotive Mirror Giant Donnelly

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Researched by Industrialinfo.com. (Industrial Information Resources, Incorporated; Houston, Texas). Magna International, Incorporated (NYSE:MGA) (Aurora, Ontario) and Donnelly Corporation (NYSE:DON) (Holland, Michigan) have jointly announced a merger in which Donnelly will become a wholly-owned subsidiary of Magna. The transaction is expected to be finalized in late September. The new entity will be known as Magna Donnelly. Dwane Baumgardner, currently Donnelly Chairman and CEO, will head up the company. Purchase price was $320 million, plus the assumption of interest-bearing debts amounting to about $95 million.

Magna will combine its mirror operations with Donnelly, making Magna Donnelly the largest mirror supplier in the world. The new company will have combined annualized sales of over $1.2 billion.

Donnelly, founded in Holland, Michigan, in 1905, is the second largest Tier I global supplier of interior and exterior mirrors. It supplies every original equipment manufacturer in the world with lighting, electronic, and interior systems. Donnelly has been in the forefront of new electronic technology developments, such as bright-headlight sensing rear-view mirrors. Donnelly has 16 manufacturing locations in Michigan.

Magna, one of the world's most diversified automotive suppliers, designs and manufactures automotive systems, assemblies, modules, and components, and engineers and assembles complete vehicles for original equipment car and light truck manufacturers. Through its various divisions, Intier, Cosmo, Decoma, Tesma, and Magna Steyr, it manufactures a multitude of automotive products.