October 25, 2007 -- Auto parts firm Linamar Corp. has signed a memorandum of understanding to acquire Visteon Corp.'s Swansea plant in Wales for an undisclosed price. The plant produces power transfer units, transfer cases and axles.
Guelph-based Linamar said yesterday the acquisition would extend the firm's presence in the drive-line business and complement Linamar's recent acquisition of Ford's PTU business in Nuevo Laredo, Mexico, completed in August. Ford is the main customer of the Swansea operations. "The plant in Swansea offers us unique opportunities to service potential U.K. and other European customers from a new strategic location," CEO Linda Hasenfratz said in a release. "We continue to work closely with the labour force, Visteon and other key stakeholders to build a solid business case for this potential acquisition."
The proposed transaction is still subject to due diligence, certain third-party agreements, negotiation of remaining business terms and the negotiation of mutually satisfactory agreements.
With close to 11,000 employees in 37 factories, five research-and-development centres and nine sales offices in Canada, the U.S., Mexico, Germany, Hungary, China, Korea and Japan Linamar generated sales of close to $2.3 billion in 2006.
Source: Guelph Mercury
