MUNICH -- Magna International has agreed to acquire the European operations of U.S.-based rival Cadence Innovation, Magna said on Tuesday.
Cadence Innovation filed for Chapter 11 bankruptcy protection in the U.S. last August, citing rising material costs and decreasing demand for larger vehicles. Its European operations were excluded from the insolvency proceedings.
Magna's subsidiary Decoma International will buy Cadence Europe, which supplies automotive interior an exterior plastic components and systems such as instrument panels, bumpers and radio grills to several European and Asian carmakers.
Cadence Europe reported sales of about $369 million in 2007. The company has three factories in the Czech Republic and a fourth in Hungary.
"This acquisition expands our presence and manufacturing footprint in a key market," said Tom Skudutis, chief operating officer at Magna Global Exterior and Interior Systems in a statement.
"Central and Eastern Europe are strategically important due to the competitive advantages afforded by the countries in this region."
Jerry Mosingo, Cadence Innovation CEO, said: "Over the last few years, we have grown Cadence Europe and added new technologies. Through the new ownership, the company will be able to exploit its capabilities further."