Linamar to Acquire the MacDon Group of Companies.

Release Date: December 14, 2017

Letter from MacDon 

Today we are announcing that we have entered into an agreement to sell the MacDon Group of Companies to Linamar Corporation, a Canadian company headquartered in Guelph, Ontario. The MacDon Group has grown over the years from a single firm called Killbery Industries Ltd., to MacDon Industries Ltd. (Winnipeg, Manitoba, Canada), MacDon, Inc. (Kansas City, Missouri, USA), MacDon Australia Pty. Ltd. (Melbourne, Victoria, Australia), LLC MacDon Russia Ltd. (Moscow, Russia), Westward Parts Services Ltd. (Red Deer, Alberta, Canada), MacDon Brasil Agribusiness Ltda. (Curitiba, Parana, Brazil), MacDon Enterprises, Inc. (Madison, Wisconsin, USA) and MacDon Europe GmbH (Frankfurt, Germany). Although an agreement has been signed with Linamar, the transaction is not completed until regulatory approval is given. This is planned to occur in the first quarter of 2018. 

This agreement is the result of long and careful consideration regarding what is best for the future success of the Company. Many alternatives were considered as we discussed who would be the best choice to ensure that MacDon’s unique culture and strengths are not only maintained, but continue to thrive. Through this transaction, it is important that MacDon employees understand that this is the outcome the MacDonald family feels is best for our employees, dealers, business partners, and customers.  

This is a friendly transaction between two companies that started their relationship in 2007 with an agreement to manufacture our combine pick-up header in their Hungarian facility. Linamar is acquiring MacDon because MacDon is successful and Linamar has a deep understanding of the ingredients of that success; first and foremost our people. This transaction makes sense, as it will combine one of the finest automotive parts suppliers in the world with a proven leader in the design and manufacture of high-performance harvesting equipment. MacDon is a critical piece of Linamar’s long-term growth strategy to diversify into segments outside of the automotive market and be part of the key Agriculture/Food sector. MacDon will be the centrepiece of the Linamar Agriculture Business Unit and combined with their Oros Division, that manufactures and designs corn and sunflower harvesting equipment, will position both companies for global growth. Linamar’s plan is to grow their Agricultural platform through expansion of product offerings and increasing penetration in both new and underserved markets globally.

Perhaps most importantly, MacDon and Linamar share important values. Linamar is a company with a strong family-run legacy with deep Canadian roots, similar to MacDon. We both focus on safety as the most important aspect of our work and share a deep respect for people and the talent and commitment you demonstrate each day. An important part of this transaction is that MacDon will continue to be led by Gary Giesbrecht, President & CEO and current Management. 

Thank you for being part of the MacDon Family now and in the future.

MacDon Industries Ltd.

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