Ontario, Canada-based Linamar Corporation announced that it has reached an agreement to acquire Bourgault Industries Ltd. of St. Brieux, Saskatchewan, Canada.

The transaction further enhances Linamar’s industrial segment’s diversified offerings and advances its position as a leading short-line agriculture equipment manufacturer.

Bourgault is an agriculture equipment manufacturer regarded as a market and technology leader in broadacre seeding. Linamar’s existing agricultural brands include harvesting specialist MacDon, and tillage and crop nutrition expert Salford.

In a news release, Linamar stated that Bourgault is highly complimentary to these existing divisions and enables Linamar to increase its market position as it now possesses a full lineup of products in the broader crop production cycle, from field preparation, to seeding, crop nutrition, harvest and post harvest.

The transaction, representing the purchase of 100 percent of the equity interest of Bourgault, is for CAD$640 million, subject to customary adjustments. Bourgault will become part of a new Linamar Agriculture division within the broader industrial segment. This new agriculture group will continue to operate the shortline brands of MacDon, Salford and Bourgault independently while maximizing overall growth opportunities globally, better enabling future agriculture technologies.

The transaction is subject to customary regulatory approvals and expected to close in Q1 2024.