In 2017, Linamar, a company best known as an auto parts manufacturer, bought Winnipeg-based header and swather manufacturer MacDon. It followed that up by bringing implement brand Salford into its fold in 2022.
In late December, the company announced it is adding Saskatchewan-based air drill manufacturer Bourgault to its family of equipment brands.
“Linamar’s long-term vision is to focus on six markets where we see significant market and technology evolution over the coming decades as a result of key global trends that are under way,” said Linda Hasenfratz, Linamar’s executive chair and chief executive officer, during an online press conference.
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“Food and agriculture is a key market in this long-term vision, and we are rapidly enhancing our footprint in that market.
“I feel like our team has really hit it out of the park this year, finalizing three acquisitions. All three business bringing excellent technology to the table and strategic value.”
Jim Jarrell, Linamar president and chief operating officer, said his company has been looking at Bourgault for a while.
“If you go back to the day when we bought MacDon, this (Bourgault) was a clear target and discussion point we thought was complementary. Also, as part of the transaction, we’re acquiring the business of Freeform plastics and the Highline manufacturing line.”
Freeform Plastics, which builds plastic tanks for ag applications, and Highline, an implement brand, are divisions of Bourgault.
Hasenfratz said the focus at Linamar is on acquiring short-line equipment manufacturers that produce specialized products in areas the major manufacturers don’t hold a dominant market share.
In a news release announcing the takeover, current Bourgault president Gerry Bourgault said the Bourgault team of more than 900 people in Saskatchewan and more than 1,000 worldwide, is pleased to join the Linamar family. Linamar has a proven track record for successfully integrating acquired companies and for its manufacturing and business expertise.
The deal gives Linamar 100 percent equity in Bourgault for $640 million. Bourgault will resign, although the rest of the management team is expected to remain in place.
“Bourgault is a company we’ve long had our eye on,” said Hasenfratz. “We like the technology. We like how the business is run and how it complemented our existing lineup of products. So we’ve been talking to them on and off. The timing was right. The family was ready to make an exit. It comes at a time when all of our business can complement and create growth.”
When it acquired MacDon, that company had sales of about $500 million, about the same as Bourgault does now. Linamar has pushed MacDon’s sales into the range of $1 billion.
Hasenfratz expected to achieve similar growth at Bourgault. She thinks the company can do that by increasing Bourgault’s global reach and cutting manufacturing costs by including it in Linamar’s current procurement processes.
“We see excellent growth potential with the business,” Hasenfratz added. “It’s not dissimilar in size to what MacDon was when we acquired it five years ago. We are selling now in more than 30 countries with nearly 2,500 dealers and distributors around the world. We’ve really created quite a broad strategy around our agricultural products.”
The deal is expected to be completed in the first quarter of 2024.
“We doubled MacDon’s business in five years. We hope to do the same with Bourgault,” said Hasenfratz.
