Linamar acquires full ownership of joint venture casting facility
Linamar Corporation has acquired GF Casting Solutions’ 50% interest in the two companies’ 2015 joint venture, GF Linamar LLC (GFL) located in Mills River, North Carolina––as a result, Linamar will assume 100% ownership and operational control of the business. GF Casting Solutions (GF) is a division of Georg Fischer AG.
Combining expertise in high-pressure diecasting 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 and 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.”
Linamar President and COO Jim Jarrell added, “Cast light metal structural components are a strategic priority in our automotive business and the future of electrified mobility. The book of business that GF Linamar secured demonstrates the strong customer demand for these products. Going forward, our new management structure will enable us to use one operational system to better focus on launching new business in the near-term and fully achieving our lightweight structural strategy in the long-term.”
In the interim, GF will continue to support Linamar and the customer’s requirements throughout this transitionary phase.
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. According to a Linamar press statement, GF Linamar LLC will undergo a rebranding name change and be fully integrated into Linamar’s Mobility Segment.