Linamar Corporation said a subsidiary had filed conditional offers in court to acquire assets of Societe Aveyronnaise de Metallurgie (SAM) and FVM Technologies (FVM) from their respective bankruptcy estates and 100% of the outstanding shares of Alfisa Technologies (Alfisa) a Spanish company for about EUR6m.

SAM, FVM and Alfisa are a part of Groupe Arche, a French company specialising in the design, casting, and machining of high pressure die cast (HPDC) aluminium components for the automotive industry, primarily in the range of 1,400 to 2,000 metric tonnes. 

The FVM and SAM facilities are located in Villers-la-Montagne and Viviez, France, respectively, and Alfisa is in Barcelona, Spain. Total revenue is in the range of EUR100m with open casting capacity and floor space. Approximately 650 full-time employees and other temporary employees of FVM and SAM will be transferred to relevant Linamar subsidiaries if the deal proceeds.

Linamar said the acquisitions, if completed, would "represent a step forward in Linamar's light metal casting strategy to develop further leadership in integrated design, casting, and machining of aluminium components in medium and medium-large press and component sizes.

"This strategy will strengthen and grow relationship with customers in Europe, with facility locations strategically located near key existing and potential customers and an excellent skilled workforce. Linamar expects to finance the acquisition through existing credit facilities and in the near term invest in the plants to leverage Arche capabilities to grow the business."

"We are excited about the opportunity to further our expertise in high pressure die casting with these offers," said Linamar CEO Linda Hasenfratz. "SAM, FVM and Alfisa are experts in the high pressure die casting market in the mid-range to mid-large press sizes where we intend to grow and leverage our respective strengths. 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."