Linamar Corporation, Canada's second largest engineering and automobile parts manufacturer has filed conditional offers to acquire assets of French companies, Societe Aveyronnaise de Metallurgie (SAM) and FVM Technologies (FVM) whose estates have filed for bankruptcy. Additionally they have filed for acquisition of 100% shares of Alfisa Technologies (Alfisa) a Spanish company for about EUR6m.
SAM, FVM and Alfisa are subsidiaries of a French company Groupe Arche. They specialize in the design, casting, and machining of high pressure die cast (HPDC) aluminium components for the automotive industry, with an output of 1,400 to 2,000 metric tonnes.
The total revenue of these three companies stands within the range of EUR100m with open casting capacity and floor space. If the deal is materialized various Linamar subsidiaries would retain approximately 650 full-time employees and other temporary employees of FVM and SAM.
According to Linamar the proposed acquisition would "represent a step forward in Linamar's light metal casting strategy to develop further leadership in integrated design, casting, and machining of aluminium components in medium and medium-large press and component sizes.”
Commenting on the acquisition plans, Linamar CEO Linda Hasenfratz said, "SAM, FVM and Alfisa are experts in the high pressure die casting market in the mid-range to mid-large press sizes where we intend to grow and leverage our respective strengths. These businesses perfectly complement our large HPDC strategy with GF Automotive and our gravity and low pressure die casting strategy with Montupet, collectively giving us the full spectrum of capabilities for targeted light metal components."
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The company feels that the acquisition will strengthen and grow relationship with customers in Europe, with facilities strategically located close to the existing and potential customers and skilled workforce. Linamar expects to finance the deal through existing credit facilities and plans to invest in the plants in order to grow aluminium die casting business via Arche capabilities.
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