Advanced manufacturing company Linamar Corp. today announced that it has reached an agreement to acquire shortline implement manufacturer Bourgault Industries Ltd. of St. Brieux, Sask. Linamar’s existing agricultural brands include harvesting specialist MacDon (acquired in 2017), and tillage and crop nutrition expert Salford Group (acquired in 2022). The acquisition of Bourgault is expected to close in the first quarter of 2024.
The press release stated Bourgault is "highly complimentary to these existing divisions and enables Linamar to increase its market position as it now possesses a full lineup of products in. the broader crop production cycle, from field preparation, to seeding, crop nutrition, harvest and post harvest."
The transaction, representing the purchase of 100% of the equity interest of Bourgault, is for USD $479.1 million, subject to customary adjustments. Bourgault will become part of a new Linamar Agriculture division within the broader Industrial Segment. The industrial segment also includes Skyjack, a manufacturer of aerial work platforms.
This new Agriculture group will continue to operate the shortline brands of MacDon, Salford and Bourgault independently while maximizing overall growth opportunities globally. The acquisition includes Bourgault’s Highline Manufacturing division which produces hay handling and livestock feeding equipment, as well as roto-moulding producer Free Form Plastics.
In a webcast shortly after the acquisition was announced, Linamar Executive Chair & CEO Linda Hasenfratz stated the company's Agriculture group now has 400 registered patents, 2,450 dealers and has products sold in over 30 countries. Linamar reported Bourgault currently has over 750 dealers across Canada, the U.S. and Australia, annual sales between $400-$500 million Canadian dollars (USD$300-$375 million) with a "strong current order book" and operating margins between 14-18%.
"We doubled MacDon's business in 5 years, we hope to do the same with Bourgault," said Hasenfratz in the webcast.
Source : Farm Equipment