Linamar Acquires Seeding Professional Bourgault Industries, Significantly Bolstering its Agriculture Enterprise
Marcia Clark 
GUELPH, ON, Dec. 20, 2023 /CNW/ – Linamar Corporation (TSX: LNR) currently declared that it has reached an arrangement to obtain Bourgault Industries Ltd. of St. Brieux, Saskatchewan, even more boosting its Industrial segment’s diversified choices and advancing its placement as a top small-line agriculture machines manufacturer. Bourgault is a world-course agriculture equipment producer regarded as a marketplace and technological innovation leader in broad acre seeding. Linamar’s existing agricultural brand names include harvesting specialist MacDon, and tillage and crop diet expert Salford. Bourgault is remarkably complimentary to these present divisions and allows Linamar to enhance its sector situation as it now possesses a complete lineup of solutions in the broader crop production cycle, from area preparing, to seeding, crop diet, harvest and publish harvest.
The transaction, representing the obtain of 100% of the fairness fascination of Bourgault, is for CAD $640 Million, subject to customary changes. Bourgault will turn into section of a new Linamar Agriculture division inside of the broader Industrial Segment. The industrial segment also includes Skyjack, a company of aerial get the job done platforms. This new Agriculture group will continue to run the shortline brands of MacDon, Salford, and Bourgault independently while maximizing overall advancement possibilities globally, far better enabling foreseeable future Agriculture technologies, increasing the overall farm purchaser encounter, as effectively as boosting products aid. The acquisition consists of Bourgault’s Highline Production division which provides hay dealing with and livestock feeding products, as properly as roto-moulding producer No cost Kind Plastics.
Linda Hasenfratz, Linamar Executive Chair and CEO stated “We are thrilled to welcome Bourgault Industries into the Linamar family. Bourgault is a further Canadian producing success tale that draws quite a few similarities to Linamar’s background of entrepreneurism and complex innovation. The Bourgault name is synonymous with broad acre agricultural seeding innovation and offers a large option for Linamar to more diversify and improve our agriculture system, as very well as our Industrial section general. It also additional boosts our powerful synergistic diversification tactic whereby our Industrial organizations profit from acquiring leverage, world footprint and entry to marketplace foremost lean producing experience from our Mobility firms, even though our Mobility business enterprise added benefits from the potent income technology and manufacturer know-how of our Industrial companies. Collectively our company product delivers an outstanding system for regular, sustainable advancement with sturdy margins and outstanding stability sheet toughness.”
Jim Jarrell, Linamar’s President and COO additional, “Bourgault is our 3rd strategic acquisition of 2023, subsequent two prior transactions within the Mobility sector previously this 12 months. This work is the final result of a nicely-described method to expand our company with diversified product or service offerings, making a much larger possible addressable market place and new pathways for potential income growth. Bourgault strengthens our short-line agriculture platform with powerful brand name recognition, a portfolio of state-of-the-art seeding systems and an operational footprint that will allow us to greater serve the core Western Canadian and US Midwest farm base.”
Bourgault President Gerry Bourgault commented, “Bourgault was started off by my father and has a rich background in agriculture. The Bourgault family members is very proud of the legacy we have designed both of those right here in in St. Brieux, Saskatchewan, but also all-around the environment. We are thrilled to have our staff of in excess of 9-hundred folks in Saskatchewan, and in excess of just one thousand around the world, be part of the Linamar household. Linamar has a verified keep track of file for not only productively integrating acquired businesses, but also for their producing skills and business execution all round. I am assured Linamar will get the Bourgault model to new heights in its following chapter, although also letting Bourgault to keep and develop upon its deep-rooted connections to its stakeholders in Saskatchewan and all over the earth.”
Linamar will hold a webcast & meeting contact these days Wednesday December 20 at 5:00 p.m. ET to talk about the Transaction in larger detail. The function will be simulcast and can be accessed at the adhering to URL https://activities.q4inc.com/attendee/553482801. The webcast can also be navigated to by means of the Company’s web page. For all those who want to listen to an audio only phone-in solution, the figures for this get in touch with are (+1) 888 259 6580 (North The us) or (+1) 416 764 8624 (Global) Meeting ID 75145440, with a connect with-in necessary 15 minutes prior to the begin of the webcast. The conference simply call will be chaired by Ms. Hasenfratz. The webcast replay will be readily available at https://gatherings.q4inc.com/attendee/553482801 after the get in touch with. A taped replay of the convention get in touch with will also be designed obtainable Linamar Company starting off at 8:00 p.m. ET on December 20, 2023, for seven times. The variety for the replay is (+1) (877) 674-7070 or (+1) (416) 764-8692, Passcode: 145440 #. In addition, a recording of the get in touch with will be posted at https://www.linamar.com/event/linamar-bil-acquisition/
The transaction is topic to customary regulatory approvals and envisioned to close in Q1 2024. A new term mortgage facility will fund the acquisition under equivalent conditions and problems as Linamar’s present revolving credit score facility. The time period mortgage will mature in three many years to closely align to the maturing of Linamar’s current revolving credit rating facility. This phrase loan agreement has been absolutely underwritten by commitments of BMO Capital Markets, TD, Scotiabank, and Nationwide Lender.
TD Securities are acting as financial advisors to Linamar in relationship with the Transaction. Aird & Berlis LLP was retained as lawful counsel for Linamar. KPMG Company Finance are acting as economical advisors to Bourgault in link with the transaction. McDougall Gauley LLP is retained as authorized counsel for Bourgault.
Linamar Corporation (TSX:LNR) is an highly developed producing organization in which the intersection of primary-edge engineering and deep manufacturing expertise is creating options that energy cars, movement, perform and life for the potential. The Organization is produced up of two functioning segments – the Industrial segment and the Mobility section, both of those global leaders in production methods and entire world-class developers of highly engineered goods. The Industrial segment is comprised of Skyjack, MacDon and Salford. Skyjack manufactures scissor, growth and telehandler lifts for the aerial function system market. MacDon manufactures incorporate draper headers and self-propelled windrowers for the agricultural harvesting field. Salford also materials the agriculture market place with farm tillage and crop fertilizer applicator tools. The Mobility segment is focused on propulsion techniques, structural and chassis systems, electricity storage and ability era for equally the international electrified and customarily driven car markets, and is subdivided into a few regional groups and a single global products team: North America, Europe, Asia Pacific and the freshly fashioned Constructions Team. The Regional Mobility teams are vertically built-in functions combining expertise in light-weight steel casting, forging, machining and assembly. The Linamar Constructions Group delivers competitive lightweight innovations for security-vital factors and programs for the world wide mobility industry. In addition, the eLIN Solution Options Team focuses on Electrification and McLaren Engineering presents layout, enhancement, and tests solutions for the Mobility phase. Linamar’s professional medical solutions group, Linamar MedTech, focuses on manufacturing answers for clinical equipment and precision clinical parts. Linamar has over 31,000 staff in 70 producing destinations, 14 R&D centres and 28 gross sales places of work in 19 international locations in North and South The united states, Europe and Asia, which generated income of much more than $7.9 billion in 2022. For more info about Linamar Company and its field-primary merchandise and services, go to www.linamar.com or follow us on our social media channels.
Guelph, Ontario
December 20, 2023
Supply Linamar Company
For more information: For even further facts concerning this release please call Linda Hasenfratz at (519) 836-7550
