Magna sells part of business

Photo: The Canadian Press

Auto parts company Magna International Inc. has signed a deal to sell its fluid pressure and controls business to Hanon Systems, a South Korea-based company, for roughly $1.23 billion.

The business being sold specializes in the design, manufacture and supply of mechanical and electronic pumps, electronic cooling fans and other components.

Hanon Systems is a global supplier of thermal and energy management systems.

The fluid pressure and controls business had $1.4 billion in sales in 2017.

The company says about 4,200 employees across 10 facilities in North America, Europe and Asia will move to Hanon Systems.

The deal is expected to close in the first quarter of 2019, subject to a number of conditions, including antitrust approvals.