On January 5, 2001, Decoma International Inc. (Decoma) completed the purchase from Magna International Inc. (Magna) of Magna’s European exteriors system group and Magna’s majority interest in Decoma Exterior Trim Inc., a North American exterior parts joint venture. This related party transaction, valued at close to $600 million, was approved by Decoma’s minority shareholders at an annual and special meeting of shareholders on December 6, 2000.
The transaction results in Decoma becoming the largest fascia (bumper and exterior parts) manufacturer in the automotive industry. Decoma now has approximately 14,000 employees in 30 manufacturing, engineering and product development facilities in Canada, US, Mexico, Germany, Belgium and England.
Leading the deal in-house for Decoma was David Benson, Vice-President and General Counsel. Acting for Decoma and its special committee of directors were Brian Davis, Chris Fowles, Karrin Powys-Lybbe, Paul Guthrie and Dennis Mahony of Torys. Brian Colburn, Magna’s Executive Vice-President, Special Projects and Secretary, and Vincent Galifi, Executive Vice-President, Finance and CFO acted for Magna with the assistance of Jean Fraser of Osler, Hoskin & Harcourt LLP.