Linamar Buying GF Foundry in Germany

Ontario-based Linamar Corp. has an agreement in place to acquire Georg Fischer AG’s ductile iron foundry in Leipzig, Germany, for €45 million, or about $52 million. Linamar emphasized that the purchase will be “immediately accretive” to its portfolio.

The buyer and seller are former joint-venture partners in a North Carolina high-pressure diecasting foundry that is wholly owned by Linamar. The German foundry is one of the remaining assets of the GF Casting Solutions organization that was largely acquired by Nemak earlier this year.

"This divestment marks another milestone in GF’s transformation into a Flow Solutions company," stated Andreas Müller, GF CEO. "It underscores our commitment to focus on our core business, while securing continuity for employees and customers of the iron foundry under Linamar."

GF recently divested its CNC machine tool business, too. It also indicated the transaction closing date will be later this year.

Widely known as a manufacturer of automotive cast, formed, forged, and machine parts 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.

Linamar’s current metalcasting holdings are automotive aluminum operations in the U.S. and France. The new foundry will be an entry point for Linamar into markets like off-road equipment (construction, agricultural and forestry machinery), renewable energy, engine technology, and general engineering.

According to Linamar executive chairwoman Linda Hasenfratz, “the Leipzig facility acquisition provides excellent technology in large ductile iron castings to help Linamar build up our on and off highway commercial vehicle business, a key growth tactic for us this year.”

With a pouring capacity of 300,000 metric tons/year and a reported 300 employees, the plant is specially equipped to produce “machine molded” ductile iron parts - according to GF statements, it has the largest molding box in Europe - as well as 3D printing of sand for prototyping and sand cores. It also has casting coating, CNC machining, and assembly services.

“The facility has great technology, continues to build on our diversification, hosts an excellent team, and is within close proximity to some of our Linamar European facilities,” CEO Jim Jarrell stated. “This acquisition will also drive both revenue and income growth, and will enhance our Linamar family.”