It’s not often a market leader can be bought out but that’s exactly what happened when Linamar made an offer to Bourgault Industries that it simply couldn’t refuse
Bourgault, one of the world’s leading names for tillage and seeding has accepted a CAD$640 million lock stock and barrel bid to sell to Linamar who appear intent on expanding its agricultural segment at any cost.
The deal will see Linamar take over Bourgault Industries formally HQ’d at Brieux Saskatchewan Canada and add seeding and tillage equipment to a portfolio that already includes harvesting specialist MacDon, and tillage and crop nutritionist Salford.
Other well-known international Linamar industrial businesses include aerial platform manufacturer Skyjack.
While Bourgault will now add to that portfolio as an agriculture equipment manufacturer long known for its broadacre seeding equipment including seed bars, air carts and cultivators
“We are thrilled to welcome Bourgault Industries into the Linamar family,” advanced Linda Hasenfratz, executive chair and CEO at Linamar based in Ontario Canada.
“Bourgault is another Canadian manufacturing success story that draws many similarities to Linamar’s history of entrepreneurism and technical innovation. The Bourgault name is synonymous with broadacre agricultural seeding innovation and offers a tremendous opportunity for Linamar to further diversify and grow our agriculture platform, as well as our Industrial segment overall.
“It also further enhances our powerful synergistic diversification strategy whereby our Industrial businesses benefit from purchasing leverage, global footprint and access to industry leading lean manufacturing expertise from our Mobility businesses, while our Mobility business benefits from the strong cash generation and brand expertise of our Industrial businesses.
“Together our business model provides an excellent formula for consistent, sustainable growth with strong margins and excellent balance sheet strength,” Linda Hasenfratz concluded.
The company said Bourgault is complimentary to its existing divisions and will enable it to increase its market position as it now controls a full line of products in broadacre crop cycling, from ground preparation to seeding, crop nutrition, harvest and post-harvest.
Bourgault will become part of the Linamar Agriculture division within the broader Industrial Segment. The industrial segment already includes Skyjack, a manufacturer of aerial work platforms.
The company confirmed the Agriculture division will continue to operate the shortline brands of MacDon, Salford and Bourgault independently while maximising overall dealer growth opportunities globally. As a result, this division is expected to develop future agriculture technologies and enhance product support.
The acquisition also includes Bourgault’s Highline Manufacturing division that is known for hay handling and livestock feeding equipment, as well as roto-moulding supplier Free Form Plastics.
“Bourgault is our third strategic acquisition of 2023, following two previous transactions within the Mobility sector earlier this year,” added Jim Jarrell, Linamar’s President and COO. “This work is the result of a well-defined strategy to grow our business with diversified product offerings, creating a larger potential addressable market and new pathways for future revenue growth.
“Bourgault strengthens our short-line agriculture platform with strong brand recognition, a portfolio of advanced seeding technologies and an operational footprint that will enable us to better serve the core Western Canadian and U.S. Midwest farm base,” Jim Jarrell concluded.
It was left to Bourgault President Gerry Bourgault to sum up the company’s heritage, “Bourgault was started by my father and has a rich history in agriculture. The Bourgault family is incredibly proud of the legacy we have created in St. Brieux Saskatchewan and also around the world.
“We are excited to have our team of over 900 people in Saskatchewan, and over 1,000 worldwide, join the Linamar family.
“Linamar has a proven track record for not only successfully integrating acquired companies, but also for their manufacturing expertise and business execution overall. I am confident Linamar will take the Bourgault brand to new heights in its next chapter, while also allowing Bourgault to maintain and build upon its deep-rooted connections to its stakeholders in Saskatchewan and around the world,” Gerry Bourgault concluded.
The local division of Bourgault Industries will continue as normal and already has an ordering program in place for the next winter harvest. Call Bourgault on tel: 08 9399 9700 for your nearest dealer use this link.
