Linamar Corp. has reached an agreement with automotive supplier Dura-Shiloh, owned by MiddleGround Capital, to acquire its battery enclosures business for $325 million in all-cash consideration.
"This is an exciting announcement for Linamar which marks the next phase of our transition towards an electrified mobility world," Linda Hasenfratz, executive chair and CEO of Linamar, said. "We are creating a significant structures and chassis business that is focused on both electrification [and] propulsion agnostic opportunities. This latest announcement of acquiring Dura-Shiloh's battery enclosures business is another milestone achieved in that strategy."
The deal includes three factory locations in the U.S., the Czech Republic and North Macedonia, a May 30 release said. The three sites manufacture battery enclosures for battery electric vehicle applications.
Linamar's current designs include cast aluminum and welded fabricated aluminum assemblies. The acquisition of Dura-Shiloh's battery enclosures business will add multi-material, composite and high-strength steel designs with precision bonding to Linamar's product range.
The deal is expected to close during the third quarter of 2023, subject to customary regulatory approval and other closing conditions.
Linamar has several battery tray and enclosures programs in production in North America and Europe, including its newest facility in Muscle Shoals, Ala.
"We are very pleased to complete this transaction with the team from Middleground Capital," Jim Jarrell, president and chief operating officer of Linamar, said in the release. "We have created an incredible range of advanced electrified solutions for our OEM customers. This deal greatly enhances our offering giving Linamar more BEV content potential."
Middleground Capital bought bought both Dura Automotive Systems and Shiloh Industries LLC in 2020.