Winnipeg, MB, July 18, 2016 –Ag Growth International Inc. (TSX: AFN) (“AGI” or the “Company”) is pleased to announce the acquisition of Mitchell Mill Systems Canada Ltd. (“Mitchell”) and its U.S. affiliate Mitchell Mill Systems USA. Based in Newton, Ontario, with a second facility in Joplin, Missouri, Mitchell is a manufacturer of material handling equipment used in grain, fertilizer, animal feed, food processing, and industrial applications. Mitchell is recognized for its extensive design, fabrication and installation expertise and the company’s product offering includes conveyor systems, bucket elevators, screw conveyors, and drag conveyors.
The transaction will be completed at similar metrics to AGI’s recent North American acquisitions. Mitchell’s revenue for their fiscal year ended February 28, 2016 was approximately $30 million. The financial consideration is comprised of a fixed amount payable upon closing, and a contingent amount payable over three years based on the achievement of EBITDA targets. The amount payable upon close will be funded from AGI’s existing revolving credit facility.
“The acquisition of Mitchell expands AGI’s Commercial business into eastern Canadian, expands our reach in the US while also providing an expanded product offering”, said AGI CEO Tim Close. “The expanded product lines move AGI into new markets and we welcome new customers in the adjacent grain and food processing space. We are very excited to have the whole Mitchell team joining AGI in pivotal roles as we extend our capabilities into new markets. The team will continue to be led by Todd and Stephen Mitchell and we congratulate them on building an excellent business focused on quality, reliability and service.”