Linamar Corporation

Linamar Corporation

August 15, 2007 10:04 ET

Linamar to Acquire Ford's Automotive Component Holdings Converca Operations

GUELPH, ONTARIO--(Marketwire - Aug. 15, 2007) - Linamar Corporation (TSX:LNR) and Ford Motor Company today signed a Definitive Agreement for Linamar's purchase of Automotive Components Holdings' (ACH) Power Transfer Unit (PTU) business and Converca I Plant in Nuevo Laredo, Mexico.

The purchase will include the 304,000 square-foot plant, 25 acres of land, as well as the experience inherited from a skilled team of engineers. The PTU plant currently operates with approximately 500 staff in addition to 20 engineers.)

Linamar announced a purchase proposal for the Converca I Plant in April 2007. The agreement has now been finalized and, at closing on September 1, Linamar will acquire the facility along with its product engineering group. The Converca plant's PTU capability will compliment Linamar's expertise in automotive systems and further diversifies its product offering in North America.

"We are pleased to add both the PTU manufacturing and product engineering capabilities to our portfolio, this leading-edge PTU technology reinforces our role as a full system supplier," said Linda Hasenfratz, Linamar's CEO. "We welcome this addition to our team and see great opportunity for this market and its growth potential in the future."

The PTU is a critical driveline component which provides all-wheel-drive control to vehicles. The Converca plant, located in Mexico, will adopt the Linamar culture of lean, autonomous profit centres and commitment to continuous improvement.

This acquisition by Linamar is another example of its global presence, entrepreneurship and innovation in manufacturing and advanced process capability.

Linamar Corporation (TSX:LNR) is a diversified global manufacturing company of highly engineered products. The company's Powertrain and Driveline focused divisions are world leaders in the collaborative design, development and manufacture of precision metallic components, modules and systems for global vehicle markets. The company's Industrial division is a world leader in the design and production of innovative mobile industrial products, notably its class-leading aerial work platforms. With close to 11,000 employees in 36 manufacturing locations, 5 R&D centers and 9 sales offices in Canada, the US, Mexico, Germany, Hungary, China, Korea and Japan Linamar generated sales of close to $2.3 Billion in 2006. For more information about Linamar Corporation and its industry leading products and services, visit

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 whether the proposed transaction will proceed based on substantially the proposed terms or at all, customer demand and timing of buying decisions, product mix, competitive products 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 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.

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