On March 27, Linamar Corp. entered into a definitive agreement to acquire the Remscheid and Penzberg facilities of Winning BLW in Germany, in a strategic transaction that expands its product portfolio and manufacturing capabilities. The acquisitions are expected to add approximately C$200 million in annualized revenue and further strengthen Linamar's global footprint.
The Remscheid facility is a leader in mass production of high-performance precision bevel and intermediate gears for the light vehicle market, while the Penzberg facility specializes in helical gears and high-precision components serving the commercial and off-highway sectors.
Through these acquisitions, Linamar significantly expands its forging expertise to include warm forging, broadening its offering of precision gears to include precision bevel and helical gears as well as small to medium-sized drivetrain and transmission components. The additions further secure Linamar's position in designed and machined gears, deepen its forging expertise and reinforce its vertically integrated manufacturing model.
“The acquisition of warm forging capability, and notably the expertise in bevel and helical gears, is a huge win for us at Linamar. We have long been recognized as a global leader in the multi-billion dollar gear market and this just deepens that capability to drive growth with our customers in both light vehicle and commercial vehicle markets,” said Linamar Executive Chair Linda Hasenfratz.
Linamar CEO and President Jim Jarrell said the acquisitions are a strategic fit that strengthen Linamar's technology and manufacturing capabilities in products where it is already strong, deepen relationships with key global customers and position the company for continued growth by increasing its content per vehicle across multiple markets.
Both facilities serve customers where Linamar already has significant existing business and also introduce new key customers. Together, they are expected to contribute to Linamar's long-term growth, operational excellence and innovation leadership across mobility and industrial markets. The acquisition is expected to be immediately accretive.
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