Linamar to acquire propulsion-agnostic business from Mobex
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The deal aims to bolster Linamar's position supplying parts for electric, hybrid, and internal combustion-powered vehicles.
In a deal designed to bolster its position as a supplier of parts that can be used in electric, hybrid, and internal combustion-powered vehicles, automotive parts maker Linamar Corp. is acquiring what’s being called “a substantial portion” of the assets of auto parts supplier Mobex Fourth and 1 LLC, and certain of its affiliates, for US$70 million.
The assets, to be acquired by Linamar’s subsidiary Linamar Structures, include manufacturing operations for propulsion-agnostic chassis and suspension modules and components, such as steering knuckles, control arms and subframes.
In a Sept. 21 news release, officials with Guelph, Ont.-based Linamar said the Mobex facilities will be integrated into the “growing” structures group.
“We are very pleased to announce this acquisition, the latest step in building our revenue profile for non-ICE dependent products in alignment with our overall Mobility Structures and Chassis strategy,” said Linda Hasenfratz, Linamar’s executive chair and CEO. “The addition of the sales from this business takes our EV and propulsion-agnostic business to nearly 60 per cent of our total Mobility sales in just a couple of years, a great way for us to stay flexible in a shifting marketplace.”
The deal is expected to close in the fourth quarter of 2023.