Magna International Inc. announced it has signed a deal to buy Italy-based automotive lighting manufacturer OLSA S.p.A. for about US$ 267.9 million.
The Canadian auto parts manufacturer said the deal will make the company a global lighting supplier and expand its capability to design, engineer and manufacture headlamps, tail lamps and other lighting products.
OLSA employs about 2,500 people and has manufacturing operations in Italy, Poland, Brazil, China and Queretaro, in central Mexico, where the company inaugurated a US$ 40 million facility with capacity to build every year 1 million tail lamps and 2 million LED lights for interiors.
With the acquisition of OLSA, Magna will have a total of 11 lighting manufacturing facilities and two engineering centers globally.
In Mexico, the company supplies lighting products to Volkswagen, Honda and Nissan, but it also includes BMW Group, Daimler and FCA in its customer base.
The deal, which requires regulatory approval and other standard closing conditions, is expected to close before the end of the year.
OLSA started its Mexican operations with a workforce of 600 strong, but it’s expected to reach 1,500 employees by 2020.