Linamar Corporation, manufacturers of precision metal parts and automotive driveline systems, has agreed to buy the remaining 34% interested in Seissenschmidt AG, a high-volume producer of automotive forgings. This deal follows Ontario-based Linamar’s initial acquisition of 66% of Seissenschimidt, a deal announced in late September.
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.
No terms have been announced for either transaction. The acquisition of the 100% interest remains subject to further review and regulatory approval, the buyer noted.
At the time of the initial investment, Linamar also announced its purchase of Carolina Forge from MFC Group. It was Linamar’s first foray into forging production, adding a new category to an automotive parts production portfolio that includes various powertrain, driveline, and gear products. The group explained its strategy is to offer an integrated metal forming and machining service to customers in its product categories.
Buying the remaining shares of Seissenschmidt will allow Linamar to consolidate operations and control of the group, in line with its integration strategy.
“We are very pleased to be able to come to an agreement with the remaining shareholders of Seissenschmidt for 100% ownership,” stated Linda Hasenfratz, Linamar CEO, “This will allow us to more effectively integrate operations into Linamar to allow us to really optimize our joint capabilities, and create meaningful market share growth.”