Linamar looks to acquire three metal castings plants in France, Spain
The automotive supplier has offered to buy three foundries from France's Groupe Arche for approximately $8.8 million
GUELPH, Ont.—Canadian auto parts company Linamar Corp. has made conditional offers to buy several European metal castings assets from France’s Groupe Arche.
The Ontario firm said the deals include two facilities in France and one in Barcelona, Spain. The foundries are currently owned by Societe Aveyronnaise de Metallurgie (SAM), F.V.M. Technologies and Alfisa Technologies—all subsidiaries of Groupe Arche.
Linamar said its offers total approximately 6 million euro (about $8.8 million) and are part of bankruptcy estate sales for SAM and FVM.
CEO Linda Hasenfratz said the deals would increase the company’s position in the market for high pressure die castings and strengthen its relationship with its European customers.
“These businesses perfectly complement our large HPDC strategy with GF Automotive and our gravity and low pressure die casting strategy with Montupet, collectively giving us the full spectrum of capabilities for targeted light metal components,” she said in a statement.
Along with due diligence, anti-trust approval and other customary conditions, Linamar’s offers are contingent on each other—meaning if the acquisition of one of the assets does not move forward, none will.