GUELPH,
ON, Feb. 1, 2024 /CNW/ - Linamar Corporation
(TSX: LNR) today announced that it has completed the previously
disclosed acquisition of Bourgault Industries Ltd. The agreement to
acquire Bourgault was initially announced on December 20, 2023, and outlined that Linamar
would acquire 100% of the equity interests of Bourgault Industries
Limited and its subsidiaries. The completion of the transaction was
subject to certain regulatory approvals which have all been
met.
Bourgault is a world-class agricultural equipment manufacturer
and is regarded as a market and technology leader in broad acre
seeding. The businesses acquired by Linamar include the core
Bourgault seeder operations in St.
Brieux, Saskatchewan, as well as the Highline Manufacturing
division and the roto-moulding producer Free Form Plastics.
Bourgault will be integrated into the new Linamar Agriculture
division, joining MacDon (a harvesting equipment leader) and
Salford (a tillage and crop
nutrition equipment leader) within the broader Industrial Segment.
The Linamar Industrial Segment also includes Skyjack, an aerial
work platform producer for the access construction markets.
Linda Hasenfratz, Linamar
Executive Chair and CEO commented "We are very happy to have
concluded this acquisition process and now officially welcome
Bourgault into the Linamar family. The core equipment brands of
MacDon, Salford, and Bourgault now
make up a unified Linamar Agriculture Division. The brands will
continue to operate as independent businesses in the same manner
dealers and farmers have come to know them for. We are thrilled to
have acquired a third jewel in our agricultural crown, which will
be immediately accretive and accompanied by a strong team and
leading technology. This is a further expansion of Linamar's
growing Industrial group, which has become an excellent compliment
to our Mobility business. The two segments function in parallel to
provide cash, cross-functional engineering support, human resources
talent and procurement buying-power to each other as needed."
In conjunction with the Bourgault transaction closing, Linamar
has also finalized a new CAD $700
million term loan agreement. The term loan has similar terms
and conditions as Linamar's existing credit facility and matures in
three years time.
Linamar Corporation (TSX:LNR) is an advanced manufacturing
company where the intersection of leading-edge technology and deep
manufacturing expertise is creating solutions that power vehicles,
motion, work and lives for the future. The Company is made up of
two operating segments – the Industrial segment and the Mobility
segment, both global leaders in manufacturing solutions and
world-class developers of highly engineered products. The
Industrial segment is comprised of Skyjack, MacDon, Salford and Bourgault. Skyjack manufactures
scissors, boom and telehandler lifts for the aerial work platform
industry. MacDon manufactures combine draper headers and
self-propelled windrowers for the agricultural harvesting industry.
Salford also supplies the
agriculture market with farm tillage and crop fertilizer applicator
equipment. Bourgault is a leader in the agriculture air seeding
sector. The Mobility segment is focused on propulsion systems,
structural and chassis systems, energy storage and power generation
for both the global electrified and traditionally powered vehicle
markets, and is subdivided into three regional groups North America, Europe, Asia
Pacific and the newly formed Structures product group. The
Regional Mobility groups are vertically integrated operations
combining expertise in light metal casting, forging, machining and
assembly. The Linamar Structures Group offers competitive
lightweight innovations for safety-critical components and systems
for the global mobility market. In addition, the eLIN Product
Solutions Group focuses on Electrification and McLaren
Engineering provides design, development, and testing services for
the Mobility segment. Linamar's medical solutions group, Linamar
MedTech, focuses on manufacturing solutions for medical devices and
precision medical components. Linamar has over 32,000
employees in 76 manufacturing locations, 16 R&D centres and 31
sales offices in 19 countries in North and South America, Europe and Asia, which generated sales of more than
$7.9 billion in 2022. For more
information about Linamar Corporation and its industry-leading
products and services, visit www.linamar.com or follow us on our
social media channels.
To the extent any forward-looking statement in this press
release constitutes "future-oriented financial information" or
"financial outlooks" within the meaning of applicable Canadian
securities laws, such information is being provided to demonstrate
the anticipated results and the reader is cautioned that this
information may not be appropriate for any other purpose and the
reader should not place undue reliance on such future-oriented
financial information and financial outlooks. Future-oriented
financial information and financial outlooks, as with
forward-looking statements generally, are, without limitation,
based on the assumptions and subject to risks. The Company's actual
financial position and results of operations may differ materially
from management's current expectations. Any future-oriented
financial information and financial outlooks used herein is neither
audited nor reviewed. Where possible, the information has been
constructed by management from available audited or audit reviewed
financial statements. Where no audited or audit reviewed
information has been available, additional management accounting
information has been utilized to construct the financial
information. The targets set forth in the future-oriented financial
information, and the related assumptions, involve known and unknown
risks and uncertainties that may cause actual results to differ
materially. While Linamar believes there is a reasonable basis for
these targets, such targets may not be met. Accordingly, do not
place undue reliance on any future-oriented financial information
or financial outlooks.
SOURCE Linamar Corporation