Linamar says it is to purchase Carolina Forge Company’s (CFC), business of high volume, hot forged product, in Wilson, North Carolina, as well as 66% of the shares of Seissenschmidt, also specialising in hot forgings.
Seissenschmidt has three main locations in Germany, Hungary and the US, while combined annual sales of the two entities are expected to be close to C$450m (US$403m), with a combined employee base of around 1,150 staff.
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Linamar adds its move is due to the fit with its strategy of offering integrated metal forming/machined solutions in products such as gears, as well as supplementing its powertrain business and leveraging driveline, gear based products.
The company says the deal will also allow it to address market trends in light weighting and design for products such as gears, differentials, wheel bearings and hubs and sprockets with high speed forging processes.
“We are very pleased with these results of months of work in developing our global forging strategy,” said Linamar CEO, Linda Hasenfratz.
“CFC is well known and positioned in the North American market, where we intend to invest further and grow significantly and Seissenschmidt is considered a global leader in terms of excellence in high volume forging technology, a reputation built over its 160 year history.
“The capabilities of these employees greatly enhance our component and system expertise in key markets such as gears which will be an important driver in increasing market share. Gear manufacturing is a key strategy for Linamar and an integrated forged and machined product a key element in solidifying our global dominance in this highly opportunistic market.”
The CFC transaction is expected to close in the near future, while the acquisition of the 66% interest in Seissenschmidt is subject to, among other things, further due diligence and regulatory approval.
