The acquisition of Bourgault Industries bolsters Linamar’s agriculture business.
By Andrew Joseph, Farms.com; Photo via Bourgault Industries Ltd.
Linamar Corporation, a Guelph, Ontario-headquartered manufacturing company, has agreed to purchase the St. Brieux, Saskatchewan-based Bourgault Industries Ltd.
The acquisition includes Bourgault's Highline Manufacturing division, which produces hay handling and livestock feeding equipment, as well as roto-moulding producer Free Form Plastics.
Bourgault is a world-class agriculture equipment manufacturer regarded as a market and technology leader in broad-acre seeding. This acquisition will increase Linamar’s diverse industrial segment while advancing its position as a leading short-line agriculture equipment manufacturer.
The Linamar company owns many well-known agricultural brands, including the harvesting specialist MacDon and the tillage and crop nutrition expert Salford.
The Bourgault acquisition will provide Linamar with the capability 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.
Linda Hasenfratz, the Executive Chair and Chief Executive Officer of Linamar, stated, "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."
She added: “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 businesses benefit 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 transaction, representing the purchase of 100 percent of the equity interest of Bourgault, is for CDN $640 million, subject to customary adjustments.
Bourgault will become part of a new Linamar Agriculture division within the broader industrial segment. This new segment will include Skyjack, a manufacturer of aerial work platforms.
The 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, and enhancing product support.
Jim Jarrell, the President and Chief Operating Officer of Linamar, added that Bourgault is the company’s third acquisition of 2023, following two previous transactions within the mobility sector earlier this year.
“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 US Midwest farm bases,” explained Jarrell.
Bourgault President Gerry Bourgault commented, "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 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.”
He continued. “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."
Linamar has over 31,000 employees in 70 manufacturing locations, 14 R&D centres, and 28 sales offices in 19 countries in North and South America, Europe, and Asia, which generated sales of more than $7.9 billion in 2022.
More information on Linamar may be found at www.linamar.com.