Toronto, Ontario — In this week’s Tuesday Ticker, Magna signs an agreement to acquire the majority of a Chinese seat supplier, AkzoNobel adds a coatings company to its roster and a Canadian insurer sweeps up four acquisitions across three provinces.
Seat supplier signed
Magna has signed an agreement to acquire majority ownership of Honglizhixin (HLZX), a leading seat supplier to Chinese automakers.
The acquisition will expand Magna’s seating capabilities across China, and Magna will acquire a majority stake in its existing seating joint venture with HLZX.
The two companies currently operate a 50-50 joint venture that was formed in 2015. Magna’s relationship with HLZX over the years has enabled agreements to deepen the partnership. Magna has signed a Shareholder Agreement and Share Purchase Agreement and intends to finalize the deals by the beginning of 2021, signalling a strong commitment to the China market.
“China is an important market for Magna where we are committed to delivering high-quality seat technology to both domestic and foreign automakers, as well as non-traditional startups in the area of mobility,” said John Wyskiel, president of Magna Seating. “HLZX runs an impressive business and we are proud to build upon our existing relationship and strengthen our competitiveness through increased vertical integration, additional manufacturing sites, and full engineering and testing.”
The current Magna-HLZX joint venture includes two manufacturing plants. Under the new ownership agreement, 10 plants will be added to Magna’s manufacturing footprint, adding critical mass and scale to the company’s seating operations in China.
Magna’s seating business, recognized by automakers and consumers for its innovation and quality, includes six R&D centers and 66 manufacturing operations around the globe.
Powdered paint partnership
AkzoNobel (Amsterdam, the Netherlands) has completed the acquisition of Stahl Performance Powder Coatings and its range of products for heat-sensitive substrates. The deal gives the company accelerated access to unique low curing technology that will open up exciting new market opportunities.
The commercially ready technology acquired by AkzoNobel is the only one of its kind in the powder coatings industry. It includes both UV and thermally curing powders and will enable the company to penetrate the ultra-low cure (80-100°C) domain, opening up new markets based on applying powder to temperature-sensitive substrates such as MDF, plywood, thermoplastics and composites.
“This is a great acquisition which will enable us to build on our global leadership position by entering emerging market spaces that have major potential,” says Daniela Vlad, Business Director of AkzoNobel Powder Coatings. “The clearly differentiating UV technology, in particular, is expected to see significant growth and will further strengthen our position as a complete provider of sustainable solutions for heat-sensitive substrates, in particular for our wood coatings customers.”
Cross-Canada sweep
Westland Insurance has acquired four brokerages across Western Canada, a move that supports the company’s expansion strategy by serving more communities in the west.
The four brokerages, King Insurance est. 1962 in Winnipeg, MB; Johnson Agencies est. 1967 in Leduc, AB; Hedderick Insurance Agencies est. 1949 in Pincher Creek, AB; and Nauroth & Associates est. 1989 in Prince George BC, add four more branches and over 30 employees to Westland’s already expansive network.
“This is an exciting time for Westland as we continue our strategic expansion across Canada. These acquisitions strengthen our presence in western Canada, and, for the first time, provide us the opportunity to support clients in Manitoba,” commented Westland Insurance CEO Jason Wubs. “These are all client-focussed agencies with deep roots in their communities, and they are perfectly aligned to Westland’s core values.”
Westland Insurance is an independent insurance broker with more than 130 locations throughout B.C., Alberta and Saskatchewan.
