Magna Sells Lighting and Roof Systems Businesses to Sharpen EV Focus

[Business Restructuring] Magna plans to divest its lighting and roof systems businesses through three transactions to focus on core segments.

Key Development: Non-core Assets Sold by Region

Magna has signed definitive agreements to sell its lighting and roof systems businesses to two investment firms. A global investment company will acquire its lighting operations in North America, South America, and China, while German private equity firm Mutares will take over the European lighting and roof systems businesses.

Key Figures: Combined Annual Revenue of $1.1 Billion

In 2025, the divested businesses are expected to generate combined revenue of approximately $1.1 billion, with $1 billion from lighting and about $100 million from roof systems. European lighting alone contributes roughly $235 million.

Strategic Rationale: Focus on High-Growth, High-Margin Segments

Magna emphasized that the divestiture will not affect its 2026 earnings per share guidance and stated it will continue optimizing its portfolio to enhance long-term returns. CEO Swamy Kotagiri said the move aims to ensure a smooth transition for customers and employees while strengthening the company’s core competitiveness.