Linamar Corporation

Linamar Corporation

January 09, 2007 17:25 ET

Linamar Corporation Announces Agreement Regarding 107 Woodlawn Road Property in the City of Guelph

GUELPH, ONTARIO--(CCNMatthews - Jan. 9, 2007) - Linamar Corporation (TSX:LNR) confirms it is the purchaser of the 'Imperial Tobacco' property at 107 Woodlawn Road in Guelph and today announced that SYNNEX Canada Limited has entered into an arrangement to purchase the Woodlawn Road property from Linamar Corporation.

"We were interested in this property from the beginning," stated Jim Estill, CEO of SYNNEX Canada Limited. "We were involved in the bidding process but eventually Linamar Corporation was the successful purchaser of the property. We advised Linamar at that time that we were still interested in leasing part of the property, should that option become available."

Linamar entered the bidding process for the property at Woodlawn Road in an attempt to secure a potential site for its future research and development centre last summer. As the successful bidder, Linamar moved forward with the purchase, but toward the end of 2006 and into 2007 determined that this was not the ideal site to house the new centre and has since entered into an arrangement with SYNNEX to purchase the surplus property after the Linamar sale is closed.

"Linamar has a firm deal with Imperial Tobacco and, of course, intends to fully honour that deal and purchase the property," stated Jim Jarrell, Linamar's President and Chief Operating Officer. "However, after reassessing our business needs and given SYNNEX's previous interest in the property, we decided to make an arrangement whereby SYNNEX would ultimately become the owner of the property once our sale with 'Imperial Tobacco' closed. This solution will be a great one for all involved and ensure the property remains used, viable and vital in the City of Guelph."

"We look forward to the completion of these transactions and the continued growth of SYNNEX in Guelph," concluded Mr. Estill.

Linamar designs, develops and manufactures precision machined components, modules and systems for engine, transmission and chassis systems primarily for the North American and European marketplace. The company's industrial division is a world leader in aerial lift platform products. The company has over 10,000 employees in 36 manufacturing locations, five research and development centers and nine sales offices in Canada, United States, Mexico, Germany, Hungary, China, Korea and Japan.

Certain information regarding Linamar set forth in this document, including management's assessment of the Company's future plans and operations may constitute forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results may differ materially from these anticipated in the forward-looking statements due to factors such as customer demand and timing of buying decisions; product mix; competitive products; the cost, timing and effectiveness of cost reduction initiatives; and pricing pressure. In addition, uncertainties and difficulties in domestic and foreign financial markets and economies could adversely affect demand from customers. These factors, as well as general market, economic and political conditions, may in turn have a material adverse effect on the Company's financial results. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.

Contact Information

  • Linamar Corporation
    Crystal Hyde
    Communications Manager
    (519) 836-7550
    SYNNEX Canada Ltd.
    Jim Estill
    (519) 837-2444