Parties
Company
Linamar Corporation
Company
Bourgault Industries Ltd.
On December 20, 2023, Linamar Corporation announced its acquisition of Bourgault Industries Ltd., a renowned broad acre seeding equipment manufacturer in St. Brieux, Saskatchewan. The deal, valued at CAD $640 million, involves Linamar purchasing 100% equity interest in Bourgault, subject to standard adjustments. This acquisition broadens Linamar's agricultural offerings and strengthens its position as a leading short-line agriculture equipment manufacturer, complementing its existing brands MacDon and Salford.
Bourgault will become part of Linamar's new Agriculture division within its Industrial Segment, which includes other brands like Skyjack. The acquisition aims to enhance global growth opportunities, enable future agriculture technologies, improve the farm customer experience, and bolster product support. It also includes Bourgault's Highline Manufacturing and Free Form Plastics divisions.
Linamar's Executive Chair and CEO, Linda Hasenfratz, and President and COO, Jim Jarrell, highlighted the strategic growth and diversification benefits of this acquisition. Bourgault President Gerry Bourgault expressed confidence in Linamar's ability to further the Bourgault brand while maintaining its strong community ties.
The transaction, expected to close in Q1 2024, will be funded through a new term loan facility underwritten by BMO Capital Markets, TD, Scotiabank, and National Bank. TD Securities and Aird & Berlis LLP served as Linamar's financial and legal advisors, respectively. Bourgault's advisors were KPMG Corporate Finance and McDougall Gauley LLP.
Deal Type
Merger & AcquisitionIndustry
AgricultureTransaction
$ 640,000,000Deal Status
ClosedClosing Date
01 February 2024