Magna announced its plans to acquire transmission supplier Getrag for $1.9 billion.

Magna, the giant Canadian-based supplier, has agreed to acquire the Getrag Group, one of the world’s largest suppliers of automotive transmissions, in a deal valued at $1.9 billion, or 1.75 billion euros.

The transaction is expected to close near the end of 2015, subject to a number of conditions including obtaining all necessary regulatory approvals.

Don Walker, Magna’s chief executive officer, said the acquisition bolsters the company’s overall product portfolio by adding one of the world’s largest suppliers of automatic transmissions to the Magna family.

“As part of our ongoing product portfolio review, we have identified the expansion of our powertrain business as a strategic priority. Getrag is an excellent fit with this strategy,” Walker said.

The “strategy” calls for Magna, which is the world’s largest auto suppliers, to win market leadership in certain key vehicle segments. Deciding it couldn’t be a top player in automotive interiors, Magna sold most of its automotive interiors unit to Spain’s Grupo Antolin for $525 million earlier this year.

Walker noted Getrag is a technology leader in a product area and is well positioned to benefit from industry trends that are driving increased vehicle fuel efficiency and reduced emissions.

“Getrag’s joint venture relationships also provide significant growth potential in China, the world’s largest automotive market and the fastest growing market for DCTs. Lastly, Getrag has a highly capable and experienced workforce, including deep powertrain engineering expertise,” Walker said.

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Getrag has an 80-year history in transmissions and offers a range of transmission systems, including manual, automated-manual, dual-clutch, hybrid and other advanced systems. In addition to its wholly owned operations, Getrag has significant joint-venture relationships with Ford, as well as Chinese automakers Jiangling and Dongfeng.

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Other Getrag customers include BMW, Daimler, Renault, Volvo and Great Wall. Including joint-venture locations, Getrag has approximately 13,500 employees and operates 13 manufacturing and 10 engineering centers in nine countries in Europe, Asia and North America.

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Getrag’s 2014 consolidated sales were approximately €1.7 billion, which excludes approximately €1.6 billion in sales generated in its non-consolidated joint ventures.