GUELPH, ON, July 4, 2017 /CNW/ - Linamar Corporation (TSX:LNR) today announced that a wholly-owned subsidiary of Linamar has filed conditional offers with the Commercial Court in Paris to acquire selected assets of Societe Aveyronnaise de Metallurgie S.A. ("SAM") and F.V.M. Technologies S.A. ("FVM") from their respective bankruptcy estates and 100% of the outstanding shares of Alfisa Technologies, S.L.U. (Alfisa) a Spanish company for a total consideration of approximately 6 million Euros. (These proposed transactions are collectively referred to as the "Offers" or the "Acquisitions").
SAM, FVM and Alfisa are a part of Groupe Arche S.A., a French company specialized in the design, casting, and machining of high pressure die cast (HPDC) aluminum components for the automotive industry, specializing primarily in the range of 1,400 to 2,000 metric tonnes.
The FVM and SAM facilities are located in Villers-la-Montagne and Viviez, France, respectively, and Alfisa is located in Barcelona, Spain. Total revenue is in the range of 100 million Euros with open casting capacity and floor space. Pursuant to the proposed Acquisitions, approximately 650 full-time employees and other temporary employees of FVM and SAM will be transferred to relevant Linamar subsidiaries.
The Acquisitions, if completed, will represent a step forward in Linamar's Light Metal Casting strategy to develop further leadership in integrated design, casting, and machining of aluminum components in medium and medium-large press and component sizes. This strategy will strengthen and grow Linamar's relationship with customers in Europe, with facility locations strategically located near key existing and potential customers and an excellent skilled workforce. Linamar expects to finance the acquisition through existing credit facilities and in the near term invest in the plants to leverage Arche capabilities to grow the business.
Linamar's Offers are contingent upon several factors, including but not limited to due diligence, Linamar board approval, and anti-trust approval. Further, Linamar's offers are contingent upon each other. If any of Linamar's offers is not accepted, the acquisitions contemplated by the other offers will not be completed.
"We are excited about the opportunity to further our expertise in high pressure die casting with these Offers," said Linamar CEO Linda Hasenfratz. "SAM, FVM and Alfisa are experts in the high pressure die casting market in the mid-range to mid-large press sizes where we intend to grow and leverage our respective strengths. These businesses perfectly complement our large HPDC strategy with GF Automotive and our gravity and low pressure die casting strategy with Montupet, collectively giving us the full spectrum of capabilities for targeted light metal components."
Linamar will hold a conference call on July 4, 2017 at 8:30 a.m. EST to discuss this announcement. The numbers for this call are (647) 427-3383 (local/overseas) or (888) 424-9894 (North America) conference ID 49783390, with a call-in required 10 minutes prior to the start of the conference call. The conference call will be chaired by Linda Hasenfratz, Linamar's Chief Executive Officer. A copy of this press release will be available on the company's website after 8:00 a.m. EST on July 4, 2017 and at www.sedar.com by the start of business on July 5, 2017. A taped replay of the conference call will also be made available starting at 8:00 p.m. on July 4, 2017 for ten days. The number for replay is (855) 859-2056, Conference ID 49783390.
Linamar Corporation (TSX:LNR) is a diversified global manufacturing company of highly engineered products powering vehicles, motion, work and lives. The Company is made up of 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. The Company's Machining and Assembly, Casting and Forging operating groups focus on precision metallic components, modules and systems for engine, transmission, driveline and body systems designed for global vehicle and industrial markets. The Company's Skyjack and Agriculture operating groups are noted for their innovative, high quality mobile industrial equipment, notably its class-leading aerial work platforms, telehandlers and agricultural equipment. With more than 25,500 employees in 58 manufacturing locations, 6 R&D centers and 21 sales offices in 17 countries in North and South America, Europe and Asia, Linamar generated sales of $6.0 billion in 2016. For more information about Linamar Corporation and its industry leading products and services, visit www.linamar.com or follow us on Twitter at @LinamarCorp.
Forward Looking Information, Risk and Uncertainties
Certain information provided by Linamar in this press release, MD&A, the consolidated financial statements and other documents published throughout the year which are not recitation of historical facts may constitute forward-looking statements. The words "may", "would", "could", "will", "likely", "estimate", "believe", "expect", "plan", "forecast" and similar expressions are intended to identify forward-looking statements. Readers are cautioned that such statements are only predictions and the actual events or results may differ materially. In evaluating such forward-looking statements, readers should specifically consider the various factors that could cause actual events or results to differ materially from those indicated by such forward-looking statements.
Such forward-looking information may involve important risks and uncertainties that could materially alter results in the future from those expressed or implied in any forward-looking statements made by, or on behalf of, Linamar. Some of the factors and risks and uncertainties that cause results to differ from current expectations include, but are not limited to, changes in the competitive environment in which Linamar operates, OEM outsourcing and insourcing; sources and availability of raw materials; labour markets and dependence on key personnel; dependence on certain customers and product programs; technological change in the sectors in which the Company operates and by Linamar's competitors; delays in or operational issues with product launches; foreign currency risk; long-term contracts that are not guaranteed; acquisition and expansion risk; foreign business risk; cyclicality and seasonality; capital and liquidity risk; legal proceedings and insurance coverage; credit risk; emission standards; tax laws; securities laws compliance and corporate governance standards; fluctuations in interest rates; environmental emissions and safety regulations; trade and labour disruptions; world political events; pricing concessions to customers; and governmental, environmental and regulatory policies.
The foregoing is not an exhaustive list of the factors that may affect Linamar's forwarding looking statements. These and other factors should be considered carefully and readers should not place undue reliance on Linamar's forward-looking statements. Linamar assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.
SOURCE Linamar Corporation
For further information: regarding Linamar and this release, please contact Linda Hasenfratz at (519) 836-7550