Linamar acquires three battery enclosure factories
by CM staff
The deal includes three factory locations in Alabama, US; Czechia; and North Macedonia.
GUELPH — Linamar Corporation 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 in Alabama, that Linamar.
“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.
