GUELPH, ON, July 4, 2017 /CNW/ - Linamar Corporation
(TSX:LNR) today announced that a wholly-owned subsidiary of
Linamar has filed conditional offers with the Commercial Court in
Paris to acquire selected assets
of Societe Aveyronnaise de Metallurgie S.A. ("SAM") and F.V.M.
Technologies S.A. ("FVM") from their respective bankruptcy estates
and 100% of the outstanding shares of Alfisa Technologies, S.L.U.
(Alfisa) a Spanish company for a total consideration of
approximately 6 million Euros.
(These proposed transactions are collectively referred to as
the "Offers" or the "Acquisitions").
SAM, FVM and Alfisa are a part of Groupe Arche S.A., a French
company specialized in the design, casting, and machining of high
pressure die cast (HPDC) aluminum components for the automotive
industry, specializing primarily in the range of 1,400 to 2,000
metric tonnes.
The FVM and SAM facilities are located in Villers-la-Montagne
and Viviez, France, respectively,
and Alfisa is located in Barcelona,
Spain. Total revenue is in the range of 100 million Euros with open casting capacity and
floor space. Pursuant to the proposed Acquisitions, approximately
650 full-time employees and other temporary employees of FVM and
SAM will be transferred to relevant Linamar subsidiaries.
The Acquisitions, if completed, will represent a step forward in
Linamar's Light Metal Casting strategy to develop further
leadership in integrated design, casting, and machining of aluminum
components in medium and medium-large press and component
sizes. This strategy will strengthen and grow Linamar's
relationship with customers in Europe, with facility locations strategically
located near key existing and potential customers and an excellent
skilled workforce. Linamar expects to finance the acquisition
through existing credit facilities and in the near term invest in
the plants to leverage Arche capabilities to grow the business.
Linamar's Offers are contingent upon several factors, including
but not limited to due diligence, Linamar board
approval, and anti-trust approval. Further, Linamar's offers
are contingent upon each other. If any of Linamar's offers is
not accepted, the acquisitions contemplated by the other offers
will not be completed.
"We are excited about the opportunity to further our expertise
in high pressure die casting with these Offers," said Linamar CEO
Linda Hasenfratz. "SAM, FVM and
Alfisa are experts in the high pressure die casting market in the
mid-range to mid-large press sizes where we intend to grow and
leverage our respective strengths. These businesses perfectly
complement our large HPDC strategy with GF Automotive and our
gravity and low pressure die casting strategy with Montupet,
collectively giving us the full spectrum of capabilities for
targeted light metal components."
Linamar will hold a conference call on July 4, 2017 at 8:30 a.m.
EST to discuss this announcement. The numbers for this
call are (647) 427-3383 (local/overseas) or (888) 424-9894
(North America) conference ID
49783390, 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 8:00 a.m. EST on July 4,
2017 and at www.sedar.com by the start of business on
July 5, 2017. A taped replay of
the conference call will also be made available starting at
8:00 p.m. on July 4, 2017 for ten days. The number for
replay is (855) 859-2056, Conference ID
49783390.
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 segment, which are further divided into 5 operating
groups – Machining & Assembly, Light Metal Casting, Forging,
Skyjack and Agriculture, all world leaders in the design,
development and production of highly engineered products. The
Company's Machining and Assembly, Casting and Forging operating
groups focus on precision metallic components, modules and systems
for engine, transmission, driveline and body systems designed for
global vehicle and industrial markets. The Company's Skyjack and
Agriculture operating groups are noted for their innovative, high
quality mobile industrial equipment, notably its class-leading
aerial work platforms, telehandlers and agricultural equipment.
With more than 25,500 employees in 58 manufacturing locations, 6
R&D centers and 21 sales offices in 17 countries in North and
South America, Europe and Asia, Linamar generated sales of $6.0 billion in 2016. For more information about
Linamar Corporation and its industry leading products and services,
visit www.linamar.com or follow us on Twitter at @LinamarCorp.
Forward Looking Information, Risk and Uncertainties
Certain information provided by Linamar in this press release,
MD&A, the consolidated financial statements and other documents
published throughout the year which are not recitation of
historical facts may constitute forward-looking statements. The
words "may", "would", "could", "will", "likely", "estimate",
"believe", "expect", "plan", "forecast" and similar expressions are
intended to identify forward-looking statements. Readers are
cautioned that such statements are only predictions and the actual
events or results may differ materially. In evaluating such
forward-looking statements, readers should specifically consider
the various factors that could cause actual events or results to
differ materially from those indicated by such forward-looking
statements.
Such forward-looking information may involve important risks and
uncertainties that could materially alter results in the future
from those expressed or implied in any forward-looking statements
made by, or on behalf of, Linamar. Some of the factors and risks
and uncertainties that cause results to differ from current
expectations include, but are not limited to, changes in the
competitive environment in which Linamar operates, OEM outsourcing
and insourcing; sources and availability of raw materials; labour
markets and dependence on key personnel; dependence on certain
customers and product programs; technological change in the sectors
in which the Company operates and by Linamar's competitors; delays
in or operational issues with product launches; foreign currency
risk; long-term contracts that are not guaranteed; acquisition and
expansion risk; foreign business risk; cyclicality and seasonality;
capital and liquidity risk; legal proceedings and insurance
coverage; credit risk; emission standards; tax laws; securities
laws compliance and corporate governance standards; fluctuations in
interest rates; environmental emissions and safety regulations;
trade and labour disruptions; world political events; pricing
concessions to customers; and governmental, environmental and
regulatory policies.
The foregoing is not an exhaustive list of the factors that may
affect Linamar's forwarding looking statements. These and other
factors should be considered carefully and readers should not place
undue reliance on Linamar's forward-looking statements. Linamar
assumes no obligation to update the forward-looking statements, or
to update the reasons why actual results could differ from those
reflected in the forward-looking statements.
SOURCE Linamar Corporation