Magna International Inc. has agreed to sell three of its plants in Germany to Mutares SE & Co., affecting about 1,700 employees.
The sale of the plants, located in Obertshausen, Sulzbach/Saar and Idar-Oberstein, respectively, is expected to close in the third quarter this year, subject to regulatory approvals, a May 18 statement by Magna said.
"The decision reflects the company rationalizing its European footprint within some of its vehicle exterior product offerings," the statement said. "Magna is committed to ensuring a smooth transition for employees and customers."
The plants produce plastic components including bumper and exterior trim, radiator grills and other trim components, according to a Mutares news release. They also provide design expertise and in-house engineering and generate annual sales of about 360 million euros ($438 million).
The Obertshausen operation has two additional satellite sites at Neckarsulm and Klein-Krotzenburg that are also part of the transaction.
"The acquisition of the three exteriors plants is a great win for us," Johannes Laumann, chief investment officer at Mutares, said in the release. "We are confident that the business is well positioned to benefit from several strategic growth initiatives in the future. It will benefit especially from automotive megatrends of fuel efficiency and demand for increasingly lightweight exterior plastics from OEMs. We therefore see great potential for the business as part of our portfolio."