Canada’s Linamar has agreed to acquire select North American assets of auto parts company Aludyne, in a deal valued at $300m.

The deal encompasses substantially all of Aludyne's precision casting, machining solutions, and manufacturing operations within North America.

It is set to “significantly” enhance Linamar's manufacturing presence across the continent, particularly in the US, according to a statement from the Canadian manufacturer.

Aludyne, based in Southfield, Michigan, is recognised as a Tier 1 automotive supplier, focusing on lightweight aluminium chassis and structural technologies.

The company operates across six countries, comprising 20 manufacturing facilities and five technical centres in North America, Europe, and Asia.

Once the deal is finalised, the North American assets of Aludyne will be incorporated into Linamar's Structures Group, which forms part of the firm's wider Mobility Segment.

Linamar executive chair Linda Hasenfratz said: “We are thrilled to welcome the Aludyne teams into the Linamar family. This acquisition enhances our leadership in propulsion-agnostic, lightweight aluminum casting and machining technologies.

“Aludyne’s proprietary light metal casting technology offers great growth opportunity to our structural casting business and further strengthens our Mobility business.”

Linamar called this acquisition "highly complementary" to its existing Structures and Chassis business, and believes it will add capabilities in aluminium casting, precision machining, as well as product design.

Aludyne’s product range includes knuckles, subframes, control arms, and axle housings. This is said to conform to Linamar's emphasis on propulsion-agnostic structural components.

Linamar anticipates that the acquisition will be accretive shortly after completion, bolstering its capacity to support local customers.

The deal is slated for completion within 30 days, pending regulatory approvals and the fulfilment of other standard closing conditions.

Linamar plans to finance the acquisition through its existing credit facilities and available cash reserves.

Aludyne's international operations in Europe and Asia will remain unaffected by the deal.

Aludyne president and CEO Eric Showalter said: “With a streamlined portfolio upon the close of the transaction, we will be better positioned to execute on our initiatives and sharpen our focus on delivering for our customers throughout Europe and Asia.”