Linamar Corporation (TSX:LNR) entered into an agreement to acquire Bourgault Industries Ltd. for approximately CAD 640 million on December 20, 2023. The purchase price is subject to customary adjustments. Bourgault will become part of a new Linamar Agriculture division within the broader Industrial Segment.

The transaction is subject to customary regulatory approvals. The transaction is expected to close in Q1 2024. A new term loan facility will fund the acquisition under similar terms and conditions as Linamar's existing revolving credit facility.

The term loan will mature in three years to closely align to the maturing of Linamar's existing revolving credit facility. This term loan agreement has been fully underwritten by commitments of BMO Capital Markets, TD, Scotiabank, and National Bank. The deal is immediately accretive and generating cash.

TD Securities acted as financial advisor to Linamar in connection with the Transaction. Aird & Berlis LLP was retained as legal counsel for Linamar. KPMG Corporate Finance are acting as financial advisors to Bourgault in connection with the transaction.

McDougall Gauley LLP is retained as legal counsel for Bourgault.