Linamar Corporation, manufacturers of precision metal parts and automotive driveline systems, agreed to buy Carolina Forge Co. from MFC Group, as well as a 66% stake in Seissenschmidt AG, according to terms of two separate transactions. Ontario-based Linamar noted the two purchases represent new capabilities that fit with its strategy of offering integrated metal forming/machined parts to customers in targeted products, such as gears.
No value was reported for either transaction. The CFC transaction is expected to close “in the near future,” Linamar stated. The purchase of the majority stake in Seissenschmidt is subject to further approval and regulatory clearance.
Linamar explained that the acquisitions would supplement its powertrain business, and add value to its driveline and gear products businesses, while helping it to address the lightweighting and NVH trends for products like gears, differentials, wheel bearings, hubs, and sprockets.
Carolina Forge, in Wilson, NC, is one of three operating divisions of the MFC Group (the others are Meadville Forging and Virginia Forge) that produces hot forgings and rolled rings, with heat treating and CNC turning, drilling, broaching, and chucker turning. MFC bought the former Nucor Bearing Products in 2001, and introduced ring rolling there in 2007.
Seissenschmidt has hot forging, cold forging, heat treating, and tooling production capabilities, mainly at plants in Germany and Hungary. Its U.S. operation, Seissenschmidt Corp. in Oscoda, MI, is mainly a finish machining and distribution center.
"We are very pleased with these results of months of work in developing our global forging strategy," stated Linamar CEO Linda Hasenfratz. "CFC is well known and positioned in the North American market, where we intend to invest further, and grow significantly, and Seissenschmidt is considered a global leader in terms of excellence in high volume forging technology, a reputation built over its 160 year history.
“The capabilities of these talented employees greatly enhance our component and system expertise in key markets such as gears, which will be an important driver in increasing market share.
“Gear manufacturing is a key strategy for Linamar,” she continued, “and an integrated forged and machined product a key element in solidifying our global dominance in this highly opportunistic market."