Linamar Expands by Acquisition, Again
Ontario-based Linamar Corp. reported it has a definitive agreement to acquire two plants from Winning BLW GmbH, a German-Czech manufacturer of precision forgings for automotive, commercial vehicle, and construction markets. The plants in Remscheid and Penzberg, Germany, follow Linamar’s deal to purchase Georg Fischer AG’s ductile iron foundry in Leipzig, completed earlier this year.
Widely known as a manufacturer of automotive components and assemblies, Linamar Corp. also operates in the industrial manufacturing sector, producing aerial work platforms; and in the medical devices and precision medical components sector. Its global footprint includes manufacturing and R&D centers in North and South America, Europe, and Asia.
The new locations add warm forging capabilities to the Linamar portfolio. The Remscheid plant produces precision bevel and intermediate gears for the light vehicle market; the Penzberg operation produces helical gears and high-precision components for commercial vehicles and off-highway machinery.
“These acquisitions are a great strategic fit for Linamar,” according to CEO and president Jim Jarrell. “They strengthen our technology and manufacturing capabilities in products where we are already strong, deepen relationships with key global customers, and position us for continued growth by increasing our content per vehicle across multiple markets.”
The buyer also stated that both plants supply current Linamar customers and introduce new customers in mobility and industrial markets.
Linamar has not disclosed the cost of its takeover of the two plants, but it emphasized that they will add approximately C$200 million ($144 million) in annual revenue to the organization.
Currently the Linamar portfolio has a range of forging capabilities, notably at Linamar Forgings Carolina, in Wilson, NC. Its capabilities include hot horizontal forging (Hatebur process) and conventional vertical hot forging, as well as ring rolling and radial forging.