GUELPH,
ON, April 27, 2022 /CNW/ - Linamar Corporation
(TSX: LNR) today announced that it has entered into an agreement to
acquire 100% of the issued and outstanding equity of the
Salford group of companies (the
"Salford Group"). The Salford Group is a global leader
in crop nutrition application and tillage products. Under the terms
of the agreement, Linamar will pay approximately CAD $260 Million to Salford Group's shareholders,
subject to ordinary transaction adjustments. Linamar intends to use
funds available through its existing credit facilities to complete
the transaction. The purchase is expected to close during the
second quarter of 2022, subject to the satisfaction of customary
closing conditions, including the receipt of required regulatory
approval.
The acquisition of the Salford Group will expand Linamar's
agriculture's portfolio, which is currently anchored by MacDon
Industries Limited. Following the acquisition, Salford Group will
continue to leverage its established manufacturing and distribution
network to sell products under the Salford brand.
"This is an exciting and important acquisition for Linamar,"
said Linda Hasenfratz, Linamar's
Executive Chair and CEO. "Salford
has a strong portfolio of differentiated products in the crop
nutrition application and tillage segments. These are areas we had
identified in our agriculture growth strategy as highly attractive
segments for future product diversification."
"Agriculture and food is a key element of our Linamar 2100
strategic roadmap, which was first outlined following our
acquisition of MacDon in 2018", said Jim
Jarrell, Linamar's President and COO. "Through MacDon, we
already have an established market-leading position in the
harvesting segment. Tillage and crop nutrition are a natural
complement to that product portfolio which will allow us to
accelerate sales of all products. Combining Linamar's scaled
resources and global reach with Salford's leading reputation will drive value
creation for all stakeholders."
Salford Group, founded in 1978 is headquartered in Salford, Ontario with three manufacturing
locations in Canada and two
manufacturing locations in the United
States. The Salford product
lineup includes both pneumatic and spinner type fertilizer
spreaders, cover crop seeders, and a range of tillage
equipment. Salford's
products are engineered and built to be durable, innovative, and
complementary to mainline OEM products with distinct performance
advantages related to higher productivity, greater efficiency and
environmental sustainability. The company has been able to
leverage technological developments in precision agriculture to
allow producers to manage their crop production with an ever
increasing degree of accuracy.
Salford products are highly
engineered and focused on innovation and durability. Their
team of 33 top R&D professionals launches new products annually
all focused on enhancing soil productivity and yield potential in
the growing precision ag market. Salford is the only company in North America carrying a full line of surface
and sub-surface granular applicators (spinner spreaders and
air-boom spreaders for surface application, pneumatic applicators
for sub-surface application).
"We are very excited to join the Linamar family," said
Geof Gray, President of Salford
Group. "Linamar and MacDon both have excellent reputations in the
industry and we believe the combination of our resources, our
respective brand strengths and distribution networks will enable
Salford to compete and innovate at
a higher level with greater market coverage, delivering even more
value to dealers and farmers."
For more information on Salford's lineup of agriculture equipment
offerings, visit their website at salfordgroup.com
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.
Salford Group is a global leader in manufacturing tillage and
precision application equipment. Salford is dedicated to improving agricultural
productivity and profitability through innovation and advancements
in precision, durability, versatility. Salford Group's products
include the patented I-Series and HALO tillage product lines.
Salford's AerWay division brings
quality tillage and pasture aeration equipment. The BBI Spreader
and Valmar divisions of Salford
bring decades of patented dry application innovations. Salford engineers and manufactures its highly
productive agricultural equipment from its facilities in
Iowa, Georgia, Ontario, and Manitoba. For more
information, visit our website at www.salfordgroup.com or visit our
social media channels.
SOURCE Linamar Corporation