Linamar Corporation (TSX: LNR) announced yesterday that it would acquire the MacDon Group of Companies for $1.2 billion CAD. The consideration will eventually be adjusted by fees and other customary adjustments.
Headquartered in Winnipeg, MacDon manufactures and sells a variety of agriculture harvesting equipment, such as drapers and self-propelled windrowers, in more than 40 countries on six continents. Linamar, which manufactures highly engineered products for the automotive, energy, and agriculture markets, will combine MacDon with its agriculture harvesting business in Hungary.
Linda Hasenfratz, Linamar's CEO, said, “The acquisition of MacDon provides a truly once-in-a-lifetime opportunity to move our agriculture business into a market leading position while providing meaningful diversification to the end markets we serve. We believe the long-term growth fundamentals for the agriculture industry are very strong given the growing and developing global population, noting the market is in the early stages of cyclical recovery.”
The transaction is expected to close in the first quarter of 2018.
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