Linamar acquiring full interest in joint venture casting facility
- March 31, 2022
Linamar Corporation has reached a deal with GF Casting Solutions (GF) to acquire their 50% interest in their joint venture, GF Linamar LLC, located in Mills River, North Carolina.
GF Casting Solutions is a division of Georg Fischer AG. The two parties originally formed the joint venture in 2015. Following this announcement, Linamar will assume 100% ownership and operational control of the business as of April 1, 2022.
GF Linamar LLC (GFL) is a North American joint venture between Linamar Corporation and GF Casting Solutions. The joint venture combined expertise in high pressure die casting and machining to provide lightweight solutions for automotive and commercial vehicle customers. GFL manufactures structural and powertrain components in aluminum and magnesium.
"We are very pleased to complete this transaction with GF," said Linda Hasenfratz, Linamar's Executive Chair & CEO. "GF has been an excellent strategic partner; however, we view this ownership change as key to securing our long-term growth plan in Lightweight Structural Castings. Increasing our Structural content per vehicle is a key strategic priority for Linamar in reducing our business concentration in vehicle powertrains and increasing our content in electrified vehicles where lightweighting is so critical. Acquiring full control over this facility will enable us to be more agile and pursue further market opportunities."
Financial details of the transaction were not disclosed. The transaction is expected to be fully funded with a combination of available cash and/or available credit under Linamar's existing credit facilities. GF Linamar LLC will undergo a rebranding name change and be fully integrated into Linamar's Mobility Segment.