GUELPH, ONTARIO--(Marketwire - Aug. 31, 2007) - Linamar Corporation (TSX:LNR) today confirms the completion of the acquisition for Automotive Components Holdings' Power Transfer Unit (PTU) business and Converca I Plant in Nuevo Laredo, Mexico.
The purchase includes the 304,000 square-foot plant, 25 acres of land, as well as a skilled team of engineers. The PTU business currently operates with approximately 500 staff in addition to 20 engineers.
Linamar announced a purchase proposal for the Converca I Plant in April 30, and later announced the agreement had been finalized on August 15. Linamar takes over ownership of the facility and management responsibility of the staff on September 1, 2007. Linamar will then re-name the Converca I Plant: 'Linamar Driveline Systems Mexico S de R.L. de C.V.' (LDL).
"Our goal now is to welcome our new employees to the team and introduce them to the Linamar culture," said Linda Hasenfratz, Linamar's CEO. "We are proud to add the innovative PTU to our diverse range of products and technologies at Linamar."
The PTU is a critical driveline system which provides all-wheel-drive control to vehicles.
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 over 11,000 employees in 37 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 www.linamar.com.
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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