Linamar makes agriculture equipment acquisition
27 December 2023
Linamar Corp., has reached an agreement to acquire Bourgault Industries Ltd. of St. Brieux, Saskatchewan, Canada, expanding its Industrial segment and adding seeding equipment to its existing range of agriculture equipment.
The transaction, representing the purchase of 100% of the equity interest of Bourgault, is for CAD $640 million, subject to customary adjustments. Linamar’s Industrial business includes aerial work platform manufacturer Skyjack.
Bourgault is an agriculture equipment manufacturer long known for its broad acre seeding equipment. Linamar’s existing agricultural brands include harvesting specialist MacDon, and tillage and crop nutrition expert Salford.
“We are thrilled to welcome Bourgault Industries into the Linamar family,” said Linda Hasenfratz, executive chair and CEO, Linamar, Guelph, Ontario, Canada.
“Bourgault is another Canadian manufacturing success story that draws many similarities to Linamar’s history of entrepreneurism and technical innovation. The Bourgault name is synonymous with broad acre agricultural seeding innovation and offers a tremendous opportunity for Linamar to further diversify and grow our agriculture platform, as well as our Industrial segment overall.
“It also further enhances our powerful synergistic diversification strategy whereby our Industrial businesses benefit from purchasing leverage, global footprint and access to industry leading lean manufacturing expertise from our Mobility businesses, while our Mobility business benefits from the strong cash generation and brand expertise of our Industrial businesses. Together our business model provides an excellent formula for consistent, sustainable growth with strong margins and excellent balance sheet strength.”
The company said Bourgault is complimentary to its existing divisions and will enable it 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.
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.
The company said the new Agriculture group will continue to operate the shortline brands of MacDon, Salford and Bourgault independently while maximizing overall growth opportunities globally, better enabling future Agriculture technologies, improving the overall farm customer experience, as well as enhancing product support.
The acquisition includes Bourgault’s Highline Manufacturing division which produces hay handling and livestock feeding equipment, as well as roto-moulding supplier Free Form Plastics.
“Bourgault is our third strategic acquisition of 2023, following two previous transactions within the Mobility sector earlier this year,” said Jim Jarrell, Linamar’s President and COO. “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. 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 U.S. Midwest farm base.”
Bourgault President Gerry Bourgault said, “Bourgault was started by my father and has a rich history in agriculture. 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 900 people in Saskatchewan, and over 1,000 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.”
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