GUELPH, ON, Sept. 26, 2014 /CNW/ - (TSX: LNR). - Linamar
Corporation (TSX:LNR), Carolina Forge Company, LLC ("CFC") and
majority shareholders of Seissenschmidt AG ("Seissenschmidt") today
signed separate definitive agreements for Linamar's purchase of
CFC's business of high volume hot forged product, located in
Wilson, North Carolina and 66% of
the shares of Seissenschmidt, which also specializes in high volume
hot forgings. Seissenschmidt has 3 primary locations in
Germany, Hungary, and the United States. Combined
annual sales of the two entities are expected to be close to
$450 million CAD and the combined
employee base is approximately 1,150 people.
Linamar has pursued these acquisitions because of the fit with
its strategy of offering integrated metal forming/machined
solutions to its customers in certain targeted products such as
gears. The acquisitions will supplement Linamar's core powertrain
business, leverage its business in driveline, gear based products
and enable Linamar to address the market trends in light weighting
and NVH design for products like gears, differentials, wheel
bearings, hubs and sprockets with high speed forging
processes.
"We are very pleased with these results of months of work in
developing our global forging strategy," said Linda Hasenfratz, Linamar's CEO, "CFC is well
known and positioned in the North American market, where we intend
to invest further and grow significantly and Seissenschmidt is
considered a global leader in terms of excellence in high volume
forging technology, a reputation built over its 160 year history.
The capabilities of these talented employees greatly enhance our
component and system expertise in key markets such as gears which
will be an important driver in increasing market share. Gear
manufacturing is a key strategy for Linamar and an integrated
forged and machined product a key element in solidifying our global
dominance in this highly opportunistic market."
The acquisitions illustrate Linamar's focus on innovation in
manufacturing and advanced process capabilities and further its
strategies of globalization and diversification. The CFC
transaction is expected to close in the near future. The
acquisition of the 66% interest in Seissenschmidt is subject to,
among other things, further due diligence and regulatory
approval.
CONFERENCE CALL: Linamar will hold a conference
call on Friday, September 26 at
11:00 a.m. EST to discuss this
acquisition. The numbers for this call are (647) 427-3383
(local/overseas) or (888) 424-9894 (North
America) confirmation number 11031167, with a call-in
required 10 minutes prior to the start of the conference
call. The conference call will be chaired by Linda Hasenfratz, Linamar's Chief Executive
Officer. A copy of this press release will be available on
the company's website after 9 a.m.
EST on September 26, 2014 and
at www.sedar.com by the start of business on September 27, 2014. A taped replay of the
conference call will also be made available starting at
2:00 p.m. on September 26, 2014 for ten days. The number
for replay is (855) 859-2056, Conference ID 11031167.
Audio only streaming of the conference call available at
http://http://www.media-server.com/m/p/4voivypu
Linamar Corporation (TSX:LNR) is a diversified global
manufacturing Company of highly engineered products powering
vehicles, motion, work and lives. The Company is made up of 2
operating segments – the Powertrain/Driveline segment and the
Industrial segments which are further divided into 4 key divisions
– Manufacturing, Driveline, Industrial Commercial Energy ("ICE")
and Skyjack, all world leaders in the design, development and
production of highly engineered products. The Company's
Manufacturing and Driveline divisions focus on precision metallic
components, modules and systems for engine, transmission and
driveline systems designed for passenger vehicle markets. The
ICE group concentrates on similar products for on and off highway
vehicle, energy and other industrial markets. The Company's
Skyjack division is noted for its innovative, high quality mobile
industrial equipment, notably its class-leading aerial work
platforms and telehandlers. With more than 18,000 employees in 44
manufacturing locations, 5 R&D centers and 15 sales offices in
12 countries in North America,
Europe and Asia, Linamar generated sales of $3.6 billion in 2013. For more information about
Linamar Corporation and its industry leading products and services,
visit www.linamar.com
SOURCE Linamar Corporation