Linamar Corporation (TSX: LNR) has completed previously announced acquisition of 100% of the outstanding equity interests of MacDon Industries Ltd. and its Group of Companies for $1.2 billion.
BMO Capital Markets and TD Securities acted as financial advisors to Linamar and Blake, Cassels & Graydon LLP acted as legal counsel for Linamar.
Winnipeg, Manitoba based MacDon is a global innovative market leader in the design and manufacturing of specialized agriculture harvesting equipment such as drapers and self-propelled windrowers.
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 will be combined with Linamar’s existing agriculture harvesting business in Hungary to position both businesses for significant growth. Linamar’s existing harvesting business is highly complementary to MacDon product plan allowing Linamar to offer a full lineup of grain and hay harvesting equipment. Linamar plans to expand its agricultural platform by increasing penetration in both new and underserviced markets globally.
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.”
Guelph, Ontario based Linamar is a diversified global manufacturing company with 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. Prior to MacDon 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.
photo credit: MacDon