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 currently has several battery tray and enclosures programs in production both in North America and Europe. Linamar's current designs include both cast aluminum as well as welded fabricated aluminum assemblies. The acquisition of Dura Shiloh's battery encloures business will add to that bringing multi-material (high strength steel and composite) designs with precision bonding into the product range. The newest facility in Muscle Shoals, Alabama is a state of the art premiere battery enclosures operation that Linamar will be able to showcase to other OEM customers in order to win future business.
"This is an exciting announcement for Linamar which marks the next phase of our transition towards an Electrified Mobility world," said Linda Hasenfratz, Executive Chair and CEO. "As we recently highlighted with our announcement of a new giga casting plant under construction in Welland, Ontario, we are creating a signicant Structures & Chassis business that is focused on both electrification as well as propulsion agnostic opportunities. This latest announcement of acquiring Dura Shiloh's battery enclosures business is another milestone achieved in that strategy."
Jim Jarrell, President and COO of Linamar added, "We are very pleased to complete this transaction with the team from Middleground Capital. The battery enclosures business will form a key piece of our electrification portfolio. We have created an incredible range of advanced electrified solutions for our OEM customers. This deal greatly enhances our offering giving Linamar more BEV content potential and more reasons for OEM customers to make us their supplier of choice for an EV future."
Further financial details of the transacation were not disclosed at this time. The purchase transaction is subject to normal course regulatory approvals.
Linamar Corporation (TSX: LNR) is an advanced manufacturing company where the intersection of leading-edge technology and deep manufacturing expertise is creating solutions that power vehicles, motion, work and lives for the future. The Company is made up of two operating segments – the Industrial segment and the Mobility segment, both global leaders in manufacturing solutions and world-class developers of highly engineered products. The Industrial segment is comprised of Skyjack, MacDon and Salford. Skyjack manufactures scissor, boom and telehandler lifts for the aerial work platform industry. MacDon manufactures combine draper headers and self-propelled windrowers for the agricultural harvesting industry. Salford also supplies the agriculture market with farm tillage and crop fertilizer applicator equipment. The Mobility segment is subdivided into three regional groups: North America, Europe and Asia Pacific. Within the Mobility segment, the regional groups are vertically integrated operations combining expertise in light metal casting, forging, machining and assembly for both the global electrified and traditionally powered vehicle markets. The Mobility segment products are focused on both components and systems for new energy powertrains, body and chassis, driveline, engine and transmission systems of these vehicles. In addition to the recently formed eLIN Product Solutions Group that focuses on Electrification, McLaren Engineering provides design, development, and testing services for the Mobility segment. Linamar's recently announced medical solutions group, Linamar MedTech, focuses on manufacturing solutions for medical devices and precision medical components. Linamar has over 28,000 employees in 66 manufacturing locations, 14 R&D centres and 28 sales offices in 17 countries in North and South America, Europe and Asia, which generated sales of more than $7.9 billion in 2022. For more information about Linamar Corporation and its industry-leading products and services, visit www.linamar.com or follow us on our social media channels.
SOURCE Linamar Corporation