The Canadian Linamar has agreed to acquire certain North American assets of the automotive parts company Aludyne, in an operation valued at 300 million dollars.
The agreement encompasses substantially all of Aludyne’s precision casting, machining solutions and manufacturing operations in North America.
It is expected to “significantly” enhance Linamar’s manufacturing presence across the continent, particularly in the US, according to a statement from the Canadian manufacturer.
Aludyne, headquartered in Southfield, Michigan, is recognized as a Tier 1 automotive supplier, focusing on lightweight aluminum chassis and structural technologies.
The company operates in six countries and comprises 20 manufacturing facilities and five technical centers in North America, Europe and Asia.
Once the deal closes, Aludyne’s North American assets will be incorporated into Linamar’s Structures Group, which is part of the company’s broader Mobility Segment.
Linamar CEO Linda Hasenfratz said: “We are delighted to welcome the Aludyne teams to the Linamar family. This acquisition enhances our leadership in propulsion-independent, lightweight aluminum casting and machining technologies.
“Aludyne’s patented light metal casting technology offers a significant growth opportunity for our structural casting business and further strengthens our Mobility business.”
Linamar called this acquisition “highly complementary” to its existing Structures and Chassis business, and believes it will add capabilities in aluminum casting, precision machining and product design.
Aludyne’s product range includes knuckles, subframes, control arms and axle housings. This is said to be in line with Linamar’s emphasis on propulsion-independent structural components.
Linamar anticipates the acquisition will ramp up shortly after completion, strengthening its ability to support local customers.
The deal is expected to be completed within 30 days, pending regulatory approvals and satisfaction of other standard closing conditions.
Linamar plans to finance the acquisition through its existing credit facilities and available cash reserves.
Aludyne’s international operations in Europe and Asia will not be affected by the deal.
Aludyne President and CEO Eric Showalter said: “With an optimized portfolio upon closing of the transaction, we will be better positioned to execute our initiatives and sharpen our focus on delivering for our customers throughout Europe and Asia.”
“Linamar Closes $300M Deal to Buy Aludyne’s North American Assets” was originally created and published by Just Auto, a brand owned by GlobalData.