Linamar Corporation announced Dec. 21 that the Guelph, Ont.-based firm has acquired Bourgault Industries Ltd. of St. Brieux, Sask.
The acquisition, worth $640 million, will see Bourgault become part of Linamar’s new Agriculture division. The new division will also operate Linamar brands MacDon and Salford. The deal will also includes Bourgault’s Highline Manufacturing division and roto-moulding producer Free Form Plastics.
“We are thrilled to welcome Bourgault Industries into the Linamar family. 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,” said Linda Hasenfratz, Linamar’s executive chair and CEO with the announcement. “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.”
This is the third acquisition for Linamar in 2023. The deal is subject to regulatory approvals and is expected to close in the first quarter of 2024.
“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 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,” said Bourgault president Gerry Bourgault.
Linamar was founded in 1964 and went public on the Toronto Stock Exchange in 1986. Today, the company has locations in 13 countries around the world. Bourgault Industries was first incorporated in 1973 and now employs over 900 people in Saskatchewan and over 1,000 around the world.
