Linamar boosts hot forging capabilities with 2 acquisitions
Company buying high volume hot forging business of Carolina Forge Co., 66 per cent interest in Germany's Seissenschmidt
GUELPH, Ont.—Manufacturing giant Linamar Corp. is boosting its hot forging capabilities with a pair of acquisitions announced this week.
According to the Guelph, Ont.-based company, it is buying the high volume hot forging business of Carolina Forge Co. LLC (CFC), based in Wilson, N.C., and a 66 per cent interest in Germany’s Seissenschmidt AG, which also specializes in hot forgings.
Combined annual sales of the two companies are about $450 million.
Seissenschmidt has three primary locations in Germany, Hungary and the United States.
Linamar said it pursued the acquisitions because they “fit with its strategy of offering integrated metal forming (and) machined solutions to its customers in certain targeted products” like gears.
The acquisitions will also supplement Linamar’s core powertrain business and allow it to address the market trends in light weighting and noise, vibration and harshness (NVH) reduction design for products like gears, differentials, wheel bearings, hubs and sprockets.
“We are very pleased with these results of months of work in developing our global forging strategy,” Linamar CEO Linda Hasenfratz said in a release.
“CFC is well known and positioned in the North American market, where we intend to invest further and grow significantly and Seissenschmidt is considered a global leader in terms of excellence in high volume forging technology.
“Gear manufacturing is a key strategy for Linamar and an integrated forged and machined product a key element in solidifying our global dominance in this highly opportunistic market.”
Seissenschmidt and CFC have a combined employee base of approximately 1,150 people.