Hanon Systems (KOSE:A018880) entered into an agreement to acquire Global fluid pressure & controls business from Magna International Inc. (TSX:MG) for approximately $1.2 billion on September 20, 2018. The sale price has been defined before the assumption of net debt and pension liabilities at closing, and subject to customary closing adjustments for net working capital. The acquisition of Global Fluid Pressure & Controls business is included in the Hanon Systems' Power & Vision segment. In 2017, the Global fluid pressure & controls business generated total sales of $1.4 billion. The transaction is subject to a number of customary conditions, including regulatory and antitrust approvals. As of February 6, 2019, The European Commission has approved the proposed acquisition of control over the fluid pressure and controls business of Magna International by Hanon Systems. The transaction is expected to close in the first quarter of 2019. As of March 4, 2019, the transaction is expected to close on March 29, 2019. The transaction offers Hanon Systems the opportunity to accelerate growth, and the potential to generate long-term margin improvement through economies of scale and operational synergies.

Evercore Inc. is acting as financial advisor to Hanon Systems. Peter Weyland, Annika Clauss, Christian Hoefs, Markus Röhrig, Peter Wehner, Anja Höfelmeier, Alla Drößler and Eckbert Müller of Hengeler Mueller Partnerschaft von Rechtsanwälten mbB acted as legal advisors for Magna and advised on European aspects of the transaction. Osler, Hoskin & Harcourt LLP and Gianfranco Veneziano of Bonelli Erede Pappalardo Studio Legale acted as legal advisors for Magna on Italian aspects of the transaction. BofA Merrill Lynch International Limited acted as financial advisor for Magna International. Sang Jin Han, Kelly Hyunsoo Jin, Jiun Kim, Michael Ulmer, Michael Brems, Mirko von Bieberstein, Roman van den Busch, Falko Maurer, Matteo Montanaro, David Singer, Clara Cibrario Assereto, Flavio Ciotti, Andrea Vignini, Caterina Marchionni, John McGill, D.C. Leonard C Jacoby, Brendan J. Cohen, Daniel J. Esannason, Emmanuel Ronco, Rick Bidstrup, Beau Sterling, Diana Wollman, David Stuckey, Caroline F. Hayday, Bobby Underwood, Robbert Snelders, Andris Rimsa, Jérémie Haldermans, Danielle Secher and Anita Ng of Cleary Gottlieb Steen & Hamilton LLP acted as legal advisors to Hanon Systems. KPMG Financial Corporation acted as financial advisor and Samjong KPMG LLC acted as fairness opinion advisor to Hanon Systems.

Hanon Systems (KOSE:A018880) completed the acquisition of Global fluid pressure & controls business from Magna International Inc. (TSX:MG) for $1.19 billion on March 29, 2019. The deal value was modified following net working capital adjustments, sequential payment adjustments reflection and currency rate fluctuation. The transaction involves nine manufacturing and engineering facilities across Europe, North America and Asia, and approximately 4,100 employees.