Glacier FarmMedia — In 2017 Linamar, a company best known as an auto parts manufacturer, purchased 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 now adding Saskatchewan-based air drill manufacturer Bourgault into its family of shortline ag 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 CEO, during an online press conference. “Food and agriculture is a key market in this long-term vision, and we are rapidly enhancing our footprint in that market.
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“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.”
“We’re calling this our third down project,” added Jim Jarrell, Linamar president and COO. “This is the third short-line acquisition we’ve done to build our powerhouse company, to hit the strategy of feeding the world. If you go back to the day when we bought MacDon, this (Bourgault) was a clear target and discussion point we thought was complimentary. Also as part of the transaction we’re acquiring the business of Freeform plastics and the Highline manufacturing line”
Both 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 shortline equipment manufacturers that produce specialized products which the major manufacturers don’t hold a dominant market share in.
In the press release announcing the takeover, current Bourgault president Gerry Bourgault commented, “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.”
The deal will see Linamar take 100 per cent equity in Bourgault for CAD $640 million as current president Gerry Bourgault steps away from the company, although the remainder of the management team will 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 complimented 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 roughly $500 million, about the same as Bourgault does now. Linamar has managed to push MacDon’s current sales into the range of $1 billion. Hasenfratz expects to be able to achieve the same level of growth with Bourgault. She thinks the company can do that by increasing Bourgault’s global reach and cutting manufacturing costs by including it in Linemar’s current procurement processes.
“We have the ability to link and leverage our purchasing efforts,” confirmed Jarrell.
“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 finalized in the first quarter of 2024.
Said Hasenfratz: “We doubled MacDon’s business in five years. We hope to do the same with Bourgault.”
