Ms. Linda Hasenfratz reports

LINAMAR TO ACQUIRE PROPULSION-AGNOSTIC BUSINESS FROM MOBEX

Linamar Corp.'s subsidiary, Linamar Structures USA (Michigan) Inc., has reached a definitive agreement with Mobex Fourth and 1 LLC, and certain of its affiliates, to acquire a substantial portion of its United States-based assets for $70-million (U.S.) cash consideration, subject to customary adjustments. The transaction is subject to customary consents and regulatory approvals, and is expected to close in mid-Q4 2023.

Mobex is a Tier 1 supplier of automotive components. The assets to be acquired by Linamar Structures consist of manufacturing operations for propulsion-agnostic chassis and suspension modules and components, such as steering knuckles, control arms and subframes. The Mobex facilities will be integrated into Linamar's growing Structures group.

The acquired business, under the management of Linamar Structures, will bolster Linamar's position as a leading supplier of propulsion-agnostic solutions that can be supplied to BEV (battery electric vehicle), hybrid and internal combustion-powered vehicle applications alike.

"We are very pleased to announce this acquisition, the latest step in building our revenue profile for non-ICE [internal combustion engine]-dependent products in alignment with our overall mobility structures and chassis strategy," said Linda Hasenfratz, executive chair and chief executive officer. "The addition of the sales from this business takes our EV and propulsion-agnostic business to nearly 60 per cent of our total mobility sales in just a couple of years, a great way for us to stay flexible in a shifting marketplace."

The transaction is expected to be accretive soon after acquisition.

"We are excited about this latest business acquisition and the capabilities it gives us for growing our structures and chassis business," said Jim Jarrell, Linamar president and chief operating officer. "We look forward to working with our OEM [original equipment manufacturer] customers to help fill their growing needs for high-quality, technologically advanced structural components."

Further financial details of the transaction were not disclosed at this time.

Linamar Corp.

Linamar is an advanced manufacturing company where the intersection of leading-edge technology and deep manufacturing expertise is creating solutions that power vehicles, motion, work and lives for the future. The company is made up of two operating segments -- the industrial segment and the mobility segment, both global leaders in manufacturing solutions and world-class developers of highly engineered products. The industrial segment comprises Skyjack, MacDon and Salford. Skyjack manufactures scissor, boom and telehandler lifts for the aerial work platform industry. MacDon manufactures combine draper headers and self-propelled windrowers for the agricultural harvesting industry. Salford also supplies the agriculture market with farm tillage and crop fertilizer applicator equipment. The mobility segment is focused on propulsion systems, structural and chassis systems, energy storage, and power generation for both the global electrified and traditionally powered vehicle markets, and is subdivided into three regional groups and one global product group: North America, Europe, Asia Pacific and the newly formed Structures group. The regional mobility groups are vertically integrated operations combining expertise in light metal casting, forging, machining and assembly. The Linamar Structures group offers competitive lightweight innovations for safety-critical components and systems for the global mobility market. In addition, the eLIN Product Solutions group focuses on electrification, and McLaren Engineering provides design, development and testing services for the mobility segment. Linamar's medical solutions group, Linamar MedTech, focuses on manufacturing solutions for medical devices and precision medical components. Linamar has over 31,000 employees in 69 manufacturing locations, 14 R&D (research and development) centres, and 28 sales offices in 19 countries in North and South America, Europe and Asia, which generated sales of more than $7.9-billion in 2022.

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