Linamar Corporation (TSX:LNR) announced late Wednesday an agreement to acquire agriculture equipment manufacturer Bourgault Industries Ltd in a transaction valued at $640 million.
Saskatchewan-based Bourgault will become part of Linamar (TSX:LNR)’s new agriculture division within its wider industrial segment, allowing the manufacturing company 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.
Linamar’s existing agricultural brands include harvesting specialist MacDon and tillage and crop nutrition expert Salford.
"Bourgault is our third strategic acquisition of 2023, following two previous transactions within the Mobility sector earlier this year," Linamar chief operating officer Jim Jarrell said in a statement.
"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 base," he added.
The deal is expected to close in the first quarter of 2024.
Shares of Linamar rose 2.4% to $65.11 in early afternoon trading on Thursday.