GUELPH, ON, Sept. 26, 2014 /CNW/ - (TSX: LNR). - Linamar Corporation (TSX:LNR), Carolina Forge Company, LLC ("CFC") and majority shareholders of Seissenschmidt AG ("Seissenschmidt") today signed separate definitive agreements for Linamar's purchase of CFC's business of high volume hot forged product, located in Wilson, North Carolina and 66% of the shares of Seissenschmidt, which also specializes in high volume hot forgings. Seissenschmidt has 3 primary locations in Germany, Hungary, and the United States. Combined annual sales of the two entities are expected to be close to $450 million CAD and the combined employee base is approximately 1,150 people.
Linamar has pursued these acquisitions because of the fit with its strategy of offering integrated metal forming/machined solutions to its customers in certain targeted products such as gears. The acquisitions will supplement Linamar's core powertrain business, leverage its business in driveline, gear based products and enable Linamar to address the market trends in light weighting and NVH design for products like gears, differentials, wheel bearings, hubs and sprockets with high speed forging processes.
"We are very pleased with these results of months of work in developing our global forging strategy," said Linda Hasenfratz, Linamar's CEO, "CFC is well known and positioned in the North American market, where we intend to invest further and grow significantly and Seissenschmidt is considered a global leader in terms of excellence in high volume forging technology, a reputation built over its 160 year history. The capabilities of these talented employees greatly enhance our component and system expertise in key markets such as gears which will be an important driver in increasing market share. Gear manufacturing is a key strategy for Linamar and an integrated forged and machined product a key element in solidifying our global dominance in this highly opportunistic market."
The acquisitions illustrate Linamar's focus on innovation in manufacturing and advanced process capabilities and further its strategies of globalization and diversification. The CFC transaction is expected to close in the near future. The acquisition of the 66% interest in Seissenschmidt is subject to, among other things, further due diligence and regulatory approval.
CONFERENCE CALL: Linamar will hold a conference call on Friday, September 26 at 11:00 a.m. EST to discuss this acquisition. The numbers for this call are (647) 427-3383 (local/overseas) or (888) 424-9894 (North America) confirmation number 11031167, 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 9 a.m. EST on September 26, 2014 and at www.sedar.com by the start of business on September 27, 2014. A taped replay of the conference call will also be made available starting at 2:00 p.m. on September 26, 2014 for ten days. The number for replay is (855) 859-2056, Conference ID 11031167.
Audio only streaming of the conference call available at http://http://www.media-server.com/m/p/4voivypu
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 segments which are further divided into 4 key divisions – Manufacturing, Driveline, Industrial Commercial Energy ("ICE") and Skyjack, all world leaders in the design, development and production of highly engineered products. The Company's Manufacturing and Driveline divisions focus on precision metallic components, modules and systems for engine, transmission and driveline systems designed for passenger vehicle markets. The ICE group concentrates on similar products for on and off highway vehicle, energy and other industrial markets. The Company's Skyjack division is noted for its innovative, high quality mobile industrial equipment, notably its class-leading aerial work platforms and telehandlers. With more than 18,000 employees in 44 manufacturing locations, 5 R&D centers and 15 sales offices in 12 countries in North America, Europe and Asia, Linamar generated sales of $3.6 billion in 2013. For more information about Linamar Corporation and its industry leading products and services, visit www.linamar.com
SOURCE: Linamar Corporation
For further information: Linda Hasenfratz, Chief Executive Officer, Guelph, Ontario, September 26, 2014