09/26/2014 11:18 EDT | Updated 11/26/2014 05:59 EST

Linamar to buy high-volume metal forging businesses in U.S., Europe

GUELPH, Ont. - Linamar Corp. (TSX:LNR) has agreed to buy a forged-metal business from Carolina Forge Co. and a majority stake in Seissenschmidt AG, which does a similar type of high-volume manufacturing in Germany, Hungary and the United States.

Linamar, which is one of Canada's largest autoparts manufacturers, says the accusations will augment its offierings in certain targeted products such as gears.

It says the CFC transaction is expected to close soon, without specifying a date, and the purchase of 66 per cent of Seissenschmidt's equity is subject to further due diligence and regulatory approval.

The combined employee base of the two acquisitions is about 1,150 people and they generate about C$450 million in annual sales.

Linamar has four key divisions that design and produce highly engineered products used in engines, transmissions, and industrial equipment.

It employs about 18,000 people in North America, Europe and Asia and generated $3.6 billion of sales in 2013.