Magna International Inc. is set to acquire BÖCO Group of Companies

The Ontario based Canadian giant is anticipated to set the deal by the third quarter of 2016

Germany: BÖCO Group of Companies is about to get acquired by Magna International's closures unit. The process is believed to be completed by the third quarter of this year. BÖCO supplies hinges, strikers and latches to various companies including the BMW Group, Daimler and Audi.

“We believe BÖCO is an excellent fit in terms of technology, footprint and customers, and we look forward to working together to further grow our business," John O' Hara, president of Magna Closures, said in a statement. He further added, "BÖCO's product and processing know-how and engineering strength also provides additional global growth opportunities for us going forward, particularly with automakers based in Germany."

BÖCO has two facilities located in Tianjin, China and Wuppertal, Germany and the entire employee strength of 450 people would shift to work for Magna Closures once the acquisition process is completed. On the other hand, Magna, in total, have 309 manufacturing operations facilities and over 90 product development, engineering and sales centers spread across 29 countries of the world. Besides that, the company employs more than 152,000 people in all its locations.

According to a recent report published by TechSci Research, “Germany Automotive Components Market By Vehicle Type, By Demand Category, By Component Type, Competition Forecast and Opportunities, 2011 - 2021”, the automotive components market in Germany is forecast to generate revenues of USD58 billion by 2021. In 2015, passenger car segment accounted for the lion’s share in the country’s automotive components market. The segment is anticipated to maintain its dominance over the next five years as well, owing to expanding passenger car fleet size, anticipated growth in passenger car sales and strong economic growth prospects.

As per TechSci Research, Magna International Inc. holds a firm position in the Germany automotive component market, as of 2015. Also, the move to acquire BÖCO Group of Companies would further assist Magna International to solidify its market presence in the European country and would increase the company’s market penetration in the Germany automotive components market in coming years.