Linamar Announces Closing of its Acquisition of MacDon
GUELPH, ON, Feb. 1, 2018 /CNW/ - Linamar Corporation (TSX:LNR) today announced that it has completed its acquisition of 100% of the outstanding equity interests of MacDon and its Group of Companies on the terms previously announced on December 14th, 2017. Headquartered in Winnipeg, Manitoba, Canada, MacDon is a global innovative market leader in the design and manufacturing of specialized agriculture harvesting equipment such as drapers and self-propelled windrowers.
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."
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's mission is to manufacture reliable machines that make harvesting easier and more productive for its customers in over 40 countries worldwide. MacDon's products excel in the toughest real-world conditions, and its pioneering, industry-leading innovations like the FlexDraper® have propelled the company's strong reputation for providing customers with quality, innovative equipment. Further, MacDon has developed strong relationships with a global dealer network of approximately 1,400 outstanding dealers and distributors, a major competitive advantage in the industry. Linamar sees a compelling cultural fit with MacDon given its strong family legacy and looks forward to building on that foundation, which has been a key driver of MacDon's success. This platform acquisition positions Linamar as a leading global agricultural equipment manufacturer.
In support of funding and closing the acquisition of MacDon, Linamar also announced today that it has successfully amended and increased its credit facilities consistent to what was disclosed on December 14th, 2017. Linamar's existing and new credit facilities have terms and conditions consistent with its previous credit facilities and the new Term Facility and the Revolving Facility will mature in five years while its existing Term Facility will mature in approximately three years.
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 & Assembly, Light Metal Casting and Forging operating groups focus on precision metallic components, modules and systems for powertrain, driveline and body systems designed for global electrified and traditionally powered 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. Prior to the 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. 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
