Magna sells FP&C business to South Korea’s Hanon Systems for $1.23B

AURORA, Ont. — Magna International has signed an agreement to sell its global Fluid Pressure & Controls (FP&C) business for $1.23 billion to Hanon Systems, a South Korea-based global supplier of thermal and energy management systems.

Magna’s global FP&C business, part of its powertrain unit, designs, manufactures and supplies mechanical and electronic pumps, electronic cooling fans, and other components. Sales in 2017 were $1.4 billion.

The deal involves 4,200 employees across 10 facilities in North America, Europe and Asia who will transition to Hanon Systems.

Magna, based in Aurora, Ont., said its powertrain business will continue as a full-system supplier of transmission and other driveline-related systems, including electrified versions.

The transaction is to close in the first quarter of 2019.