Linamar, Canada’s second largest automobile part manufacturer, has announced that it is set to acquire agricultural manufacturing company MacDon, including its assets, in a deal worth $1.2bn.
MacDon specialises in the manufacture of range of agricultural equipment including harvesting machinery such as self-propelled windrowers and drapers.
Linamar will look to further expand its presence in alternative markets, using MacDon’s significant market share within the Canadian agricultural market – a market that is expected to experience long term growth as the global population continues to flourish.
"The acquisition of MacDon provides a truly once-in-a-lifetime opportunity to move our agriculture business into a market leading position while providing meaningful diversification to the end markets we serve,” said Linda Hasenfratz, Linamar's CEO.
“We believe the long-term growth fundamentals for the agriculture industry are very strong given the growing and developing global population, noting the market is in the early stages of cyclical recovery."
MacDon’s assets will be highly complementary to Linamar’s existing agricultural interests, including its North American Harvestec brand and European OROS brand.
“We get diversification, innovation, growth and a solid deal, we couldn't be happier,” Hasenfratz concluded.