GUELPH,
ON, March 31, 2022 /CNW/ - Linamar Corporation
(TSX: LNR) today announced an agreement with GF Casting Solutions
(GF) to acquire their 50% interest in their Joint Venture, GF
Linamar LLC, located in Mills River,
North Carolina. GF Casting Solutions is a division of Georg
Fischer AG (SIX:FI-N). The two parties originally formed the
joint venture in 2015. Following this announcement, Linamar will
assume 100% ownership and operational control of the
business. The agreement has been executed and given there are
no pre-closing steps or required regulatory approvals, the
transaction is expected to close April
1st, 2022.
GF Linamar LLC (GFL) is a North American joint venture between
Linamar Corporation and GF Casting Solutions. The JV combined
leading expertise in high pressure die casting and machining to
provide lightweight solutions for automotive and commercial vehicle
customers. GFL manufactures structural and powertrain components in
aluminum and magnesium.
"We are very pleased to complete this transaction with GF," said
Linda Hasenfratz, Linamar's
Executive Chair & CEO. "GF has been an excellent
strategic partner; however, we view this ownership change as key to
securing our long-term growth plan in Lightweight Structural
Castings. Increasing our Structural content per vehicle is a
key strategic priority for Linamar in reducing our business
concentration in vehicle powertrains and increasing our content in
electrified vehicles where lightweighting is so critical.
Acquiring full control over this facility will enable us to
be more agile and pursue further market opportunities."
"Cast light metal structural components are a strategic priority
in our automotive business and the future of electrified mobility,"
added Jim Jarrell, Linamar's
President and COO. "The book of business that GF Linamar
secured demonstrates the strong customer demand for these
products. Going forward, our new management structure will
enable us to use one operational system to better focus on
launching new business in the near-term and fully achieving our
Lightweight Structural Strategy in the long-term." In the
interim, GF will continue to support Linamar and the customer's
requirements throughout this transitionary phase.
Financial details of the transaction were not disclosed.
The transaction is expected to be fully funded with a
combination of available cash and/or available credit under
Linamar's existing credit facilities. GF Linamar LLC will undergo a
rebranding name change and be fully integrated into Linamar's
Mobility Segment.
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 and MacDon. 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. The Mobility segment is subdivided into three regional
groups: North America,
Europe and Asia Pacific. Within the Mobility segment, the
regional groups are vertically integrated operations combining
expertise in light metal casting, forging, machining and assembly
for both the global electrified and traditionally powered vehicle
markets. The Mobility segment products are focused on both
components and systems for new energy powertrains, body and
chassis, driveline, engine and transmission systems of these
vehicles. In addition to the recently formed eLIN Product Solutions
Group that focuses on Electrification, McLaren Engineering provides
design, development, and testing services for the Mobility segment.
Linamar has 26,000 employees in 60 manufacturing locations, 11
R&D centres and 25 sales offices in 17 countries in North and
South America, Europe and Asia, which generated sales of $6.5 billion in 2021. 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.
SOURCE Linamar Corporation