Magna Announces Sale Of Lighting And Roof Systems Business

Magna International Inc., a global automotive parts giant, announced on April 9 that it has signed a final agreement to sell its lighting business through two separate transactions, and to sell its roof systems business through a third transaction.

This sale is divided by region.

A global investment firm will acquire Magna’s lighting businesses in North America, South America, and China, covering headlamp and taillamp programs.

German private equity group Mutares SE & Co. KGaA (“Mutares”) will acquire Magna’s European lighting business and, through a separate transaction, take over its roof systems business.

Amaneos Group, under Mutares, will strengthen its strategy by acquiring Magna's European automotive lighting business. This business is expected to generate approximately $235 million in revenue in 2025 and will serve as a transformational acquisition for the Group's Light Mobility Solutions GmbH (LMS). This acquisition combines exterior modules with advanced lighting technology to create an integrated exterior system platform, enhancing the Group's overall capabilities. By integrating lighting systems into exterior panels, the Group can increase product differentiation, per-vehicle value, and reinforce its position as a one-stop supplier for original equipment manufacturers.

Meanwhile, Mutares has also signed an agreement to acquire Magna's automotive roof systems business. This business will strengthen the capabilities of Mutares' HiLo Group in the field of roof and exterior systems, integrating the group's existing expertise in hinges and locking systems with advanced roof architecture and mechanism technologies. This will create a highly complementary platform, offering integrated roof and exterior system solutions, and enhancing the depth of the system and the potential for value creation.

The above two acquisitions align with Mutares' current strategic plan to accelerate the structural growth of its portfolio, focusing on the highly dynamic U.S. market and the European market, while simultaneously advancing significant exit projects. Mutares' Chief Investment Officer, Johannes Laumann, commented, "These two acquisitions are a crucial step in building scalable, high-performance platforms within our Automotive & Mobility segment, preparing for mid-term exits. By integrating complementary capabilities in exterior, lighting, and roof systems, we significantly enhance system depth, value per vehicle, and our core value to OEMs. This will help us achieve our 2026 target: group revenues between 7.9 and 9.1 billion euros, and holding company net profit between 165 and 200 million euros; and to achieve an average annual growth rate of 25% in group revenues and holding company net profit by 2030."

"Today's announcement reflects our commitment to proactively optimizing our business portfolio according to our core principles," said Swamy Kotagiri, CEO of Magna. "Magna will continue to focus on the businesses that drive long-term growth, improve profitability and return targets. We are committed to ensuring a smooth transition for our employees, customers, and all stakeholders."

The lighting business and the roof system business both fall under Magna's Power & Vision division. In 2025, the global sales for these two businesses are expected to be approximately $1 billion and $100 million, respectively.

The aforementioned three transactions are expected to close in the second half of 2026, subject to customary closing conditions and regulatory approvals. Magna expects that this asset sale will not impact its previously issued 2026 adjusted diluted earnings per share guidance.

This transaction is a typical case of the restructuring of the European automotive supply chain, with Magna focusing on high-growth core businesses, while Mutares quickly builds platform capabilities through add-on acquisitions, paving the way for a subsequent exit.