(RTTNews) - Linamar Corp. (LNR.TO), a prominent player in the power-vehicles manufacturing sector, has revealed its plans to purchase Gate's iron foundry located in Leipzig, Germany. The company announced on Tuesday that it has entered into a binding agreement for the acquisition, with the deal valued at 45 million euros.

The transaction is projected to reach completion by the end of 2025. Linamar anticipates that this strategic move will have an immediate positive impact on its earnings per share.

The Leipzig facility, which currently employs a workforce of 300, specializes in the production of ductile iron castings. It boasts advanced technical capabilities, including what is considered Europe's leading molding box for machine-molded iron castings.

In an official statement, the CEO of Gate expressed that the planned sale aligns with the company's strategy to concentrate on its core business operations.

For Linamar, this acquisition represents an opportunity to expand its casting solutions portfolio. The company expects to incorporate large ductile iron castings for heavy industrial applications, both on and off-highway, into its offerings.

Linamar's CEO, Jim Jarrell, shared his enthusiasm for the deal, stating, "This facility brings with it exceptional technology, furthers our diversification efforts, and houses an outstanding team. Its proximity to some of our existing European operations is an added advantage. We anticipate this acquisition will drive growth in both revenue and income, while also enriching our Linamar family."

On the Toronto Stock Exchange, Linamar's shares concluded Monday's regular trading session at C$75.41, reflecting a decrease of 1.18 percent.