GUELPH, ON, April 27, 2022 /CNW/ – Linamar Corporation (TSX: LNR) announced today that it has reached an agreement to acquire 100% of the issued and outstanding shares of Salford group of companies (the “Salford Group”). The Salford Group is a world leader in crop nutrition applications and tillage products. Under the terms of the agreement, Linamar will pay approximately CAD $260 million to Salford Group shareholders, subject to ordinary transaction adjustments. Linamar intends to use funds available through its existing credit facilities to complete the transaction. The purchase is expected to close in the second quarter of 2022, subject to the satisfaction of customary closing conditions, including obtaining required regulatory approval.
The acquisition of the Salford Group will expand Linamar’s agricultural portfolio, which is currently anchored by MacDon Industries Limited. Following the acquisition, Salford Group will continue to leverage its established manufacturing and distribution network to sell products under the Salford brand.
“This is an exciting and important acquisition for Linamar,” said Linda Hasenfratz, Executive Chairman and CEO of Linamar. “Salford has a strong differentiated product portfolio in the crop nutrition and tillage application segments. These are areas that we had identified in our agricultural growth strategy as very attractive segments for future product diversification. »
“Agriculture and food is a key part of our Linamar 2100 strategic roadmap, which was first defined following our acquisition of MacDon in 2018,” said jim jarrel, President and COO of Linamar. “Through MacDon, we already have an established market leadership position in the harvesting segment. Tillage and crop nutrition is a natural fit for this product portfolio that will allow us to accelerate sales of all products.By combining the large-scale resources and global reach of Linamar with from Salford a reputation as a leader will drive value creation for all stakeholders.”
Salford Group, founded in 1978, is headquartered in Salford, Ont. with three production sites in Canada and two manufacturing sites in United States. the Salford The product line includes air and rotary fertilizer spreaders, cover crop seeders and a range of tillage equipment. from Salford products are designed and built to be durable, innovative and complementary to mainstream OEM products with distinct performance benefits related to higher productivity, greater efficiency and environmental sustainability. The company has been able to take advantage of technological developments in precision agriculture to allow producers to manage their agricultural production with an ever-increasing degree of precision.
Salford the products are highly engineered and focused on innovation and durability. Their team of 33 top R&D professionals releases new products every year, all focused on improving soil productivity and yield potential in the growing precision farming market. Salford is the only company in North America carrying a full line of surface and subsurface granular applicators (rotary spreaders and air boom spreaders for surface application, pneumatic applicators for subsurface application).
“We are very happy to join the Linamar family,” said Geof Gray, Chairman of the Salford Group. “Both Linamar and MacDon have excellent reputations in the industry and we believe the combination of our respective resources, brand strengths and distribution networks will allow us Salford to compete and innovate at a higher level with greater market coverage, delivering even more value to dealers and farmers.”
For more information on from Salford range of agricultural equipment, visit their website at salfordgroup.com
Linamar Corporation (TSX: LNR) is an advanced manufacturing company where the intersection of advanced technology and deep manufacturing expertise creates solutions that power vehicles, move, work and live for the coming. The Company is comprised 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 includes Skyjack and MacDon. Skyjack manufactures scissor, boom and telescopic lifts for the aerial work platform industry. MacDon manufactures combine heads and self-propelled windrowers for the agricultural harvesting industry. 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 lightweight metal casting, forging, machining and assembly for the global electrified and conventionally powered vehicle markets. The Mobility segment’s products focus on both components and systems for new energy powertrains, body and chassis, powertrain, engine and transmission systems of these vehicles. In addition to the recently formed eLIN Product Solutions Group which focuses on electrification, McLaren Engineering provides design, development and testing services for the mobility segment. Linamar has 26,000 employees in 60 manufacturing sites, 11 R&D centers and 25 sales offices in 17 countries in the North and South America, Europe and Asiawhich generated sales of $6.5 billion in 2021. For more information about Linamar Corporation and its industry-leading products and services, visit www.linamar.com or follow us on our social networks.
Salford Group is a world leader in the manufacture of precision tillage and application equipment. Salford is dedicated to improving agricultural productivity and profitability through innovation and advances in precision, durability and versatility. Salford Group products include the patented I-Series and HALO tillage product lines. from Salford The AerWay division offers quality equipment for tillage and pasture aeration. The BBI Spreader and Valmar divisions of Salford bring decades of patented dry application innovations. Salford designs and manufactures its highly productive agricultural equipment from its facilities in Iowa, Georgia, Ontarioand Manitoba. For more information visit our website at www.salfordgroup.com or visit our social media channels.
SOURCE Linamar Company
For further information: Linda Hasenfratz at (519) 836-7550, Guelph, Ontario, April 27, 2022
