Winnipeg, MB (pcJ News Briefs) – Ag Growth International Inc. (TSX: AFN) has acquired 100% of the outstanding shares of Global Industries, Inc. for US $100 million.
Global Industries is a diversified manufacturer of grain storage bins, portable and stationary grain handling equipment, grain drying and aeration equipment, structural components, and steel buildings. Global has four divisions located in Nebraska and Kansas, production capacity in South Africa, and warehouses in the U.S., Europe, Australia and Africa. Global’s product catalogue and domestic and offshore geographic sales are highly complementary to AGI’s existing footprint, and are expected to substantially expand AGI’s North American and international grain handling, drying and storage platforms in both Farm and Commercial segments.
The US $100 million purchase price for Global (subject to customary post-closing adjustments), was financed by cash on hand and AGI’s revolving credit facility.
AGI today also announced a $75 million, plus 15% over-allotment option, convertible unsecured subordinated debenture bought-deal offering, the proceeds of which will be used to reduce indebtedness and for general corporate purposes. The offering will be made by a syndicate of underwriters led by CIBC Capital Markets, National Bank Financial Inc. and TD Securities Inc.
Ag Growth International Inc. is a leading manufacturer 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. AGI has manufacturing facilities in Canada, the United States, Italy, Brazil and the United Kingdom, and distributes its products globally.
photo credit: Ag Growth International