Ford will buy Tractors Supply Chain (TSC), a Canadian company that makes tractors and forklifts.
The deal is expected to close in the second quarter.
TSC manufactures forklift components for Ford.
The company has a long history in Canada, having opened its first factory in the province of Ontario in 1968.
The Canadian company’s parent company is Canadian Tire Corp., which owns both Ford and the Toronto Raptors basketball team.
Ford announced the deal in February.
Ford said it expects to generate more than $500 million in annual sales for the new deal.
Ford, based in Canada’s largest city, is looking to expand production and create jobs as it prepares for a global resurgence.
Tractors was founded in 1985 by Ken Tabor, who has been with the company since its founding.
It makes forklifter components for major automakers such as Ford, Toyota and Honda.
Tabor died in February, and the company said he was ill with diabetes.
The new acquisition will create more than 3,000 jobs.
Ford has been looking for ways to diversify its Canadian operations, and TSC provides a model for Ford to do so.
Ford’s new CEO, Mark Fields, took over as CEO of the company in February after a four-year absence.
Ford stock rose nearly 20 per cent to $31.30.
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