Fast expanding Canadian group Magna International (36 Apple Creek Blvd, Ontario L3R 4Y4) has reached an agreement to acquire 74.9% of the outstanding share capital of German-based Georg Näher GmbH (GNG, D-71706 Markgröningen) from DLW AG (D-74319 BietigheimBissingen). Subject to regulatory approval, the deal is expected to be finalised by the end of March. GNG is a supplier of trunk linings, interior panels and multi-functional carpet and sound insulation systems for automotive interiors. Its OEM customers include Mercedes Benz, VW, Opel, and BMW.

Included in the deal are its Spanish subsidiary Emfisint Automotive SA (Ctra. N-150 Km 15, E-08227 Terrassa / Barcelona) and a plant in Overpelt, Belgium. For 1996 GNG had a turnover of DEM 174m with 525 employees. Turnover of Emfisint was DEM 84m with 468 employees.

DLW, a manufacturer of flooring, furniture and sports surfaces, is another example of a company deciding to quit supplying the automotive business. Last year it sold its technical blow moulding subsidiary Helphos GmbH (PO Box 1253, D-38654 Bad Harzburg) to Solvay SA (see Plasteurope.com 6, 1996). With this latest sale the company acknowledges it is not prepared to make the necessary investment to meet the demands of the automotive OEMs. The decision may also be influenced by poor financial results in recent years. For 1996 DLW made a pre-tax loss of DEM 25.9m (compared with a DEM 89.4m loss in 1995) on turnover of DEM 1,378bn. The company is hoping to return to profit in 1997.

For Magna this acquisition represents a further extension of its European capabilities in interior systems. In 1996 the group bought the automotive systems businesses of Marley (UK), Caradon (UK) and Pebra (Germany) – see Plasteurope.com 24 and 10, 1996.