By Denise Faguy
Farms.com
Linamar Corporation has taken a significant move in the agricultural sector by acquiring Bourgault Industries Ltd., a leading name in agriculture equipment manufacturing. The deal is worth CAD $640 million; Linamar is known for its diversified industrial operations.
Bourgault, headquartered in St. Brieux, Saskatchewan, specializes in seeding technologies, complementing Linamar's existing agricultural brands, MacDon and Salford. This acquisition extends Linamar's capabilities across the entire crop production cycle, from seeding to harvest.
The acquisition also includes Bourgault's subsidiaries, Highline Manufacturing and Free Form Plastics, broadening Linamar's product offerings in the agriculture sector. This strategic move enables Linamar to provide comprehensive solutions for field preparation, seeding, crop nutrition, and post-harvest activities.
Linamar's Executive Chair and CEO, Linda Hasenfratz, emphasized the synergy between Bourgault's innovative approach and Linamar's commitment to technical excellence. This acquisition aligns with Linamar's strategy to diversify and strengthen its industrial segment.
“This work is the result of a well-defined strategy to grow our business with diversified product offerings, creating a larger potential addressable market and new pathways for future revenue growth,” explained Jim Jarrell, Linamar's President and COO. “Bourgault strengthens our short-line agriculture platform with strong brand recognition, a portfolio of advanced seeding technologies and an operational footprint that will enable us to better serve the core Western Canadian and US Midwest farm base."
"Bourgault was started by my father and has a rich history in agriculture,” commented Bourgault President Gerry Bourgault. “The Bourgault family is incredibly proud of the legacy we have created both here in in St. Brieux, Saskatchewan, but also around the world. We are excited to have our team of over nine-hundred people in Saskatchewan, and over one thousand worldwide, join the Linamar family. Linamar has a proven track record for not only successfully integrating acquired companies, but also for their manufacturing expertise and business execution overall. I am confident Linamar will take the Bourgault brand to new heights in its next chapter, while also allowing Bourgault to maintain and build upon its deep-rooted connections to its stakeholders in Saskatchewan and around the world."
The acquisition, expected to be finalized in Q1 2024, awaits regulatory approval. Funded through a new term loan, this move reflects Linamar's forward-thinking approach to business expansion and market leadership. This acquisition underscores Linamar's ambition to become a global leader in agriculture equipment manufacturing, combining innovative technology with a robust product lineup.