Linamar Corp LIMAF

Linamar Acquires 3 Battery Enclosures Factories

[Betteryear2]

GUELPH, ON, May 30, 2023 /CNW/ - Linamar Corporation (TSX: LNR) has reached a definitive agreement with Dura-Shiloh, a Middleground Capital portfolio company, to acquire its Battery Enclosures business for a total of $325M USD in all-cash consideration. The deal includes three factory locations in Alabama, US; Czechia; and North Macedonia. It is expected to close during the third quarter of 2023, subject to customary regulatory approval and other closing conditions. All three sites manufacture advanced battery enclosures for Battery Electric Vehicle (BEV) applications. The deal accelerates Linamar's strategy towards a more electrified product portfolio with increased future BEV content potential.   

Linamar Acquires 3 Battery Enclosures Factories Accelerating Electrification Evolution (newswire.ca)

[longrun86]

I am surprised by the negative reaction to the acquisition! At the surface, I like the acquisition and it shows that Linamar is allocating capital to growth at what I would expect to be high rates of return. I bought more shares today. LR

[Daudau11]

I don't think the reaction is to the acquistion... I think it has to do more with AAP (Advance Auto Parts) in the US reporting very bad results therefore affecting the whole auto industry in general