Linamar acquires partner’s interest in casting facility
Following this announcement, Linamar will assume 100 per cent ownership and operational control of the business.
Mining & Resources
GUELPH — Linamar Corporation has announced an agreement with GF Casting Solutions to acquire their 50 per cent interest in the joint venture, GF Linamar LLC, located in Mills River, N.C.
GF Casting Solutions is a division of Georg Fischer AG. The two parties originally formed the joint venture in 2015. Following this announcement, Linamar will assume 100 per cent ownership and operational control of the business.
All parties involved have executed the agreement from from pre-closing steps or regulatory approvals a company statement has explained.
The joint venture or “GFL” manufactures structural and powertrain components in aluminum and magnesium.
“We are very pleased to complete this transaction with GF,” said Linda Hasenfratz, Linamar’s Executive Chair & CEO.
“GF has been an excellent strategic partner; however, we view this ownership change as key to securing our long-term growth plan in Lightweight Structural Castings. Increasing our Structural content per vehicle is a key strategic priority for Linamar in reducing our business concentration in vehicle powertrains and increasing our content in electrified vehicles where lightweighting is so critical. Acquiring full control over this facility will enable us to be more agile and pursue further market opportunities.”
The companies did not disclose the full financial details of this transaction; however, they did state that they expect full funding for the transaction with a combination of available cash and/or available credit under Linamar’s existing credit facilities. Additionally, GF Linamar LLC will undergo a rebranding name change and become fully integrated into Linamar’s Mobility Segment.