Linamar Corporation, a major player in the manufacturing industry, has announced its acquisition of Bourgault Industries Ltd., a move that significantly strengthens its agriculture business. This strategic acquisition, worth CAD $640 million, positions Linamar as a leader in short-line agriculture equipment manufacturing.
Bourgault Industries, based in St. Brieux, Saskatchewan, is renowned for its innovative broad acre seeding technologies. This acquisition complements Linamar's existing agricultural divisions, which include MacDon - a harvesting specialist, and Salford - known for tillage and crop nutrition.
The deal includes a 100% equity interest in Bourgault and encompasses its Highline Manufacturing division, expanding Linamar's reach in hay handling and livestock feeding equipment. This new addition to Linamar's portfolio enables a comprehensive offering in the crop production cycle, from field preparation to post-harvest processes.
Linda Hasenfratz, Linamar's Executive Chair and CEO expressed excitement about integrating Bourgault into Linamar's family. She highlighted Bourgault's alignment with Linamar's ethos of entrepreneurship and technical innovation. The acquisition is seen as a step towards diversifying Linamar's industrial segment and leveraging its global footprint and manufacturing expertise.
Bourgault's President, Gerry Bourgault, shared his pride in the legacy his family business has created. He expressed confidence in Linamar's ability to elevate the Bourgault brand while maintaining its strong community ties.
The transaction, set to close in Q1 2024, is subject to customary regulatory approvals. It is financed through a new term loan facility, reflecting Linamar's strategic approach to growth and diversification. This acquisition is a testament to Linamar's commitment to expanding its product offerings and reinforcing its presence in the global agriculture equipment market.
Source : wisconsinagconnection