GUELPH, ON, Feb. 1, 2018 /CNW/ - Linamar Corporation
(TSX:LNR) today announced that it has completed its acquisition of
100% of the outstanding equity interests of MacDon and its Group of
Companies on the terms previously announced on December 14th, 2017. Headquartered in
Winnipeg, Manitoba, Canada, MacDon
is a global innovative market leader in the design and
manufacturing of specialized agriculture harvesting equipment such
as drapers and self-propelled windrowers.
Linda Hasenfratz, CEO of Linamar,
commented: "We are excited to welcome MacDon into the Linamar
family. This acquisition is a very important strategic step that
expands Linamar's capabilities and further diversifies our end
markets. MacDon is a premier, well-managed company and an
innovative market leader and we look forward to working with the
MacDon team to grow together globally."
MacDon is a preeminent manufacturer with a strong customer
following and advanced agriculture equipment technologies. It has
developed an excellent reputation for quality, reliability and
passion for harvesting technology over its 67 year history as a
family owned company. MacDon's mission is to manufacture reliable
machines that make harvesting easier and more productive for its
customers in over 40 countries worldwide. MacDon's products excel
in the toughest real-world conditions, and its pioneering,
industry-leading innovations like the FlexDraper® have propelled
the company's strong reputation for providing customers with
quality, innovative equipment. Further, MacDon has developed strong
relationships with a global dealer network of approximately 1,400
outstanding dealers and distributors, a major competitive advantage
in the industry. Linamar sees a compelling cultural fit with MacDon
given its strong family legacy and looks forward to building on
that foundation, which has been a key driver of MacDon's success.
This platform acquisition positions Linamar as a leading global
agricultural equipment manufacturer.
In support of funding and closing the acquisition of MacDon,
Linamar also announced today that it has successfully amended and
increased its credit facilities consistent to what was disclosed on
December 14th, 2017.
Linamar's existing and new credit facilities have terms and
conditions consistent with its previous credit facilities and the
new Term Facility and the Revolving Facility will mature in five
years while its existing Term Facility will mature in approximately
three years.
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 & Assembly, Light Metal Casting and Forging
operating groups focus on precision metallic components, modules
and systems for powertrain, driveline and body systems designed for
global electrified and traditionally powered 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. Prior to the acquisition
Linamar had more than 25,700 employees in 59 manufacturing
locations, 6 R&D centers and 21 sales offices in 17 countries
in North and South America,
Europe and Asia which 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