Linamar to acquire Aludyne’s North American operations for $300 million

GUELPH, Ontario - Canadian auto parts manufacturer Linamar Corporation (TSX:LNR), which InvestingPro analysis shows maintains a "GREAT" financial health score of 3.08, announced Thursday it has entered into a definitive agreement to acquire select assets of Aludyne Incorporated’s North American operations for $300 million USD. The company’s strong financial position is reflected in its impressive 63.76% stock price gain over the past six months.

The acquisition will expand Linamar’s manufacturing footprint across North America, particularly in the United States. Aludyne, a Tier 1 automotive supplier, specializes in lightweight aluminum chassis and structural technologies. According to InvestingPro data, Linamar currently operates with moderate debt levels, maintaining a healthy debt-to-equity ratio of 0.38, which positions it well for this expansion.

The transaction adds aluminum casting, precision machining, and product design capabilities that complement Linamar’s existing Structures and Chassis business. Aludyne’s product portfolio includes knuckles, subframes, control arms, and axle housings.

Upon completion, the acquired facilities will be integrated into the Linamar Structures Group within the company’s Mobility Segment. The deal is expected to close within 30 days, subject to regulatory approvals.

"This acquisition enhances our leadership in propulsion-agnostic, lightweight aluminum casting and machining technologies," said Linda Hasenfratz, Executive Chair of Linamar, in a press release statement.

Jim Jarrell, CEO and President of Linamar, noted that the transaction "reinforces supply chain stability for our OEM customers."

The acquisition is expected to be accretive soon after completion. Linamar will fund the purchase using available liquidity under existing credit facilities and cash on hand.

The company stated that the addition of U.S.-based manufacturing assets will strengthen its ability to support customers locally, which it considers increasingly important in the current global trade environment.

National Bank Capital Markets acted as the Financial Advisor to Linamar on the transaction.

In other recent news, Linamar Corporation reported its second-quarter 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $2.81 compared to the forecasted $2.76. The company’s revenue for the quarter reached $2.6 billion, despite being a 7% decrease from the previous year. Additionally, Linamar announced a definitive agreement to acquire George Fischer’s Leipzig Casting Facility for €45 million. This acquisition is set to enhance Linamar’s casting capabilities, specifically in large ductile iron castings for heavy industrial applications. The Leipzig facility is recognized for its technical prowess and houses Europe’s largest molding box for machine-molded iron castings. These developments reflect Linamar’s strategic moves to strengthen its market position and expand its operational capabilities.

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