GUELPH,
ON, Sept. 21, 2023 /CNW/ - Linamar Corporation
(TSX: LNR) announced today that its subsidiary Linamar Structures
USA (Michigan), Inc. has reached a definitive
agreement with Mobex Fourth and 1, LLC, and certain of its
affiliates to acquire a substantial portion of its US-based assets
for $70M USD cash consideration,
subject to customary adjustments. The transaction is subject to
customary consents and regulatory approvals and is expected to
close in mid-Q4 2023.
Mobex is a Tier 1 supplier of automotive components. The assets
to be acquired by Linamar Structures consist of manufacturing
operations for propulsion-agnostic chassis and suspension modules
and components, such as steering knuckles, control arms and
subframes. The Mobex facilities will be integrated into Linamar's
growing Structures Group.
The acquired business, under the management of Linamar
Structures, will bolster Linamar's position as a leading supplier
of propulsion-agnostic solutions that can be supplied to BEV,
Hybrid and Internal Combustion-powered vehicle applications
alike.
"We are very pleased to announce this acquisition, the latest
step in building our revenue profile for non-ICE dependent products
in alignment with our overall Mobility Structures and Chassis
strategy.," said Linda Hasenfratz,
Executive Chair and CEO. "The addition of the sales from this
business takes our EV and propulsion-agnostic business to
nearly 60% of our total Mobility sales in just a couple of years, a
great way for us to stay flexible in a shifting marketplace."
The transaction is expected to be accretive soon after
acquisition.
"We are excited about this latest business acquisition and the
capabilities it gives us for growing our Structures and Chassis
business", said Jim Jarrell, Linamar
President and COO. "We look forward to working with our OEM
customers to help fill their growing needs for high quality,
technologically advanced Structural components."
Further financial details of the transaction were not disclosed
at this 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 and Salford. Skyjack manufactures scissor, 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. 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 and one global product
group: North America, Europe, Asia
Pacific and the newly formed Structures 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 31,000 employees in 69 manufacturing
locations, 14 R&D centres and 28 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.
Guelph, Ontario
September 21th, 2023
SOURCE Linamar Corporation