Canadian group buys Irish auto suppliers

Irish auto supply companies Donnelly Mirrors and its subsidiary Donnelly Electronics have been acquired by Canadian group Magna International as part of a $415 million (€423 million) takeover deal of Donnelly Corp worldwide.

Donnelly Mirrors employs 540 workers in Naas and boasts annual sales of €86 million. Its subsidiary in Limerick employs 100 staff and produces electronic circuit boards with sales of €7 million.

A spokeswoman for the two Irish companies said the takeover would not be complete until September or October. She was unable to say whether there would be any job losses. "We are viewing this as a positive and there seems to be growth opportunities. . . but it is a case of wait and see at this stage," she said.

Magna is one of North America's largest auto parts producers, employing approximately 67,000 people in 19 countries.

Donnelly Corp, based in Michigan, is the second-largest global supplier of mirrors to the auto industry, with sales of approximately $850 million.

The purchase price represents consideration of approximately $320 million plus the assumption of approximately $95 million of interest-bearing debt. The combined entity, Magna Donnelly, will have sales of $1.2 billion.