Linamar makes major play in aluminum components, offers $1.16B to take over Montupet
Company has locked in a tender offer with 36.5 per cent of French parts maker's ownership
GUELPH, Ont.—Linamar Corp. is making a major play in the aluminum components market.
After ongoing talks with French auto parts maker, Montupet, Linamar has announced it has locked in a 771 million euro, or $1.16 billion tender offer to buy the company.
In addition, a number of Montupet’s senior managers and key shareholders, who own 36.5 per cent of the company, have agreed to support Linamar’s offer and to not solicit other bids.
“Montupet is a technical leader in the market, well-known and respected for its engineering and processing expertise in the cylinder head segment in particular where we intend to grow and leverage our respective strengths,” Linamar’s CEO Linda Hasenfratz, said. “Our businesses are very complementary, with our finished machining strength and Montupet’s casting expertise, and we are remarkably aligned in our business philosophies, manufacturing discipline and employee dedication with strong values and culture given our family business approach.”
Hasenfratz said she is “thrilled” to reach an agreement with Montupet and its key shareholders. Linamar will offer 71.53 euro per share in cash for the French-owned industrial group with sales and production facilities across Europe, North America and Asia. Linamar said the combination of the two companies represents a “significant milestone” in the Linamar’s strategy to become a global powerhouse in the castings industry.
“Together, we are poised for great success, as we can jointly offer our customers one-stop shopping for collaboratively designed, cast, fully machined and assembled cylinder heads and other light metal cast products,” Hasenfratz added.
Linamar said the tender offer is expected to open to the public in early Decemeber and contingent on certain conditions incudling regulatory anti-trust approval. With a significant percentage of the company’s ownership shored up, Linamar requires support from shareholders owning a further 13.5 per cent of the company to close the transaction.