Winnipeg ag company buys U.S. manufacturer for US$100M
Published by CME Manitoba on April 05, 2017
This article appeared in the Winnipeg Free Press on April 5, 2017
Ag Growth International Inc. has significantly increased its U.S. manufacturing presence with the acquisition of Nebraska-based Global Industries Inc., a manufacturer of a diversified portfolio of grain storage and handling equipment.
Winnipeg-based Ag Growth will pay US$100 million for the American company that has four facilities in Nebraska and Kansas. Global has annual revenue of about $150 million and will bump Ag Growth's total annual revenue to about $700 million.
Tim Close, president and chief executive officer of AGI, said the acquisition, "significantly increases our U.S. manufacturing capabilities and distribution channels. The U.S. grain market continues to be a core supplier of the world’s food and AGI is committed to our dealers and customers in this important market."
Ag Growth believes there are opportunities for all sorts of connections including marketing AGI products through Global’s U.S. and international sales force, shared product design and manufacturing, and the centralized procurement of production materials.
The deal was financed with cash on hand and the company simultaneously also announced a $75-million convertible debenture offering. In the previous three years Global had generated US$11.5 million in annual EBITDA (earnings before interest, tax, depreciation and amortization). AGI expects the transaction to immediately show additional profit on AGI's bottom line.
Ag Growth International specializes in the manufacture of portable and stationary grain and fertilizer handling, storage and conditioning equipment, including augers, belt conveyors, grain storage bins, grain handling accessories, grain aeration equipment and grain drying systems. It has manufacturing facilities in Canada, the United States, Italy, Brazil and the United Kingdom, and distributes its products globally.
Found in: Manitoba news