GUELPH,
ON, May 30, 2023 /CNW/ - Linamar Corporation
(TSX: LNR) has reached a definitive agreement with Dura-Shiloh, a
Middleground Capital portfolio company, to acquire its Battery
Enclosures business for a total of $325M
USD in all-cash consideration. The deal includes three
factory locations in Alabama, US;
Czechia; and North Macedonia. It
is expected to close during the third quarter of 2023, subject to
customary regulatory approval and other closing conditions. All
three sites manufacture advanced battery enclosures for Battery
Electric Vehicle (BEV) applications. The deal accelerates Linamar's
strategy towards a more electrified product portfolio with
increased future BEV content potential.
Linamar currently has several battery tray and enclosures
programs in production both in North
America and Europe.
Linamar's current designs include both cast aluminum as well as
welded fabricated aluminum assemblies. The acquisition of Dura
Shiloh's battery encloures business will add to that bringing
multi-material (high strength steel and composite) designs with
precision bonding into the product range. The newest facility in
Muscle Shoals, Alabama is a state
of the art premiere battery enclosures operation that Linamar will
be able to showcase to other OEM customers in order to win future
business.
"This is an exciting announcement for Linamar which marks the
next phase of our transition towards an Electrified Mobility
world," said Linda Hasenfratz,
Executive Chair and CEO. "As we recently highlighted with our
announcement of a new giga casting plant under construction in
Welland, Ontario, we are creating
a signicant Structures & Chassis business that is focused on
both electrification as well as propulsion agnostic opportunities.
This latest announcement of acquiring Dura Shiloh's battery
enclosures business is another milestone achieved in that
strategy."
Jim Jarrell, President and COO of
Linamar added, "We are very pleased to complete this transaction
with the team from Middleground Capital. The battery enclosures
business will form a key piece of our electrification portfolio. We
have created an incredible range of advanced electrified solutions
for our OEM customers. This deal greatly enhances our offering
giving Linamar more BEV content potential and more reasons for OEM
customers to make us their supplier of choice for an EV
future."
Further financial details of the transacation were not disclosed
at this time. The purchase transaction is subject to normal course
regulatory approvals.
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, MacDon and Salford. 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. Salford also supplies the agriculture market
with farm tillage and crop fertilizer applicator equipment. 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's recently
announced medical solutions group, Linamar MedTech, focuses on
manufacturing solutions for medical devices and precision medical
components. Linamar has over 28,000 employees in 66 manufacturing
locations, 14 R&D centres and 28 sales offices in 17 countries
in North and South America,
Europe and Asia, which generated sales of more than
$7.9 billion in 2022. 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
