Magna Completes Purchase of New Venture Gear
December 22, 2003—Canadian auto parts supplier Magna International Inc., based in Aurora, Ontario, has completed its acquisition of Syracuse, NY-based New Venture Gear, formerly a wholly-owned subsidiary of DaimlerChrysler Corp.
The transaction involves the creation of a new joint venture which will be known as New Venture Gear. The new company will be owned 80% by Magna and 20% by DaimlerChrysler. The agreement has Magna scheduled to acquire the remaining portion from DaimlerChrysler in 2007.
The transaction includes New Venture Gear's manufacturing facility in Syracuse, NY, its R&D center and sales offices in Troy, MI,and a manufacturing facility in Roitzsch, Germany.
In a press release, Frank Stronach, Magna's chairman and interim CEO, said, "We are pleased to complete this important transaction and welcome more than 3,800 new employees, including more than 3,500 in Syracuse, NY, to the Magna family. We also appreciate the cooperation we receuved from local and state officials in New York. With a strong manufacturing and development presence in Syracuse and in Europe, excellent technologies and a skilled and motivated workforce, we have a strong base on which to grow our drivetrain business in the coming years."
Magna has approximately 81,000 employees in 217 manufacturing operations and 49 product development and engineering centers in 22 countries.