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
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