Winnipeg-based grain and forage harvesting equipment manufacturer MacDon has entered an agreement to be sold to Linamar Corporation for C$1.2 billion.
Linamar is based in Guelph, and employs 25,000 people around the world — mostly in automotive parts and industrial manufacturing. The company also owns a harvest equipment business in Hungary, which will be combined with MacDon.
“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. 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.” said Linda Hasenfratz, Linamar’s CEO, in a news release.
“MacDon is a strong, well-managed company and an innovative market leader in both customer penetration and technology evolution; it will be the centerpiece of our agriculture business, which includes our existing European corn header business, highly complementary to MacDon products. We get diversification, innovation, growth and a solid deal, we couldn’t be happier,” she continued.
The deal is subject to customary regulatory approvals and is expected to close in the first quarter of 2018.
More to come.