Winnipeg, MB, January 17, 2018 – Ag Growth International Inc. (“AGI” or the “Company”) (TSX: AFN) announced today that it recently acquired CMC Industrial Electronics (“CMC”) and Junge Control Inc. (“JCI”). Combined sales and adjusted EBITDA for the two entities in their most recently completed fiscal years were approximately $15 million and $4 million, respectively.
CMC is a leading supplier of hazard monitoring sensors and systems used in agricultural material handling applications. CMC also manufactures commercial bin monitoring sensors and systems. Founded in 1997, CMC has locations in Burnaby, BC, and Minneapolis, MN. CMC has strong relationships with domestic and multinational customers and provides AGI with new products to better serve its customers in an environment of increasingly stringent safety standards.
JCI is a leading manufacturer of automation, measurement and blending systems for the agriculture and fuel industries. Founded in 1979, JCI is based in Cedar Rapids, Iowa. JCI’s precision blending and measurement systems, focused primarily on liquid fertilizer blending, are highly complementary to AGI’s fertilizer product offering and further broadens AGI’s fertilizer platform.
The acquisitions of CMC and JCI add significant strength to our applied technology platform, and continue to evolve our product and solution portfolio enabling us to serve current and future customers with broader solutions. AGI is proud to welcome the teams from CMC and JCI to the AGI family.
 See "Non-IFRS Financial Measures" below.
AGI is a leading provider of equipment solutions for agriculture bulk commodities including seed, fertilizer, grain, and feed systems with a growing platform in providing equipment and solutions for food processing facilities. AGI has manufacturing facilities in Canada, the United States, the United Kingdom, Brazil, South Africa, France and Italy, and distributes its product globally.
This news release contains forward-looking information within the meaning of applicable securities laws that reflects our expectations regarding the future growth, results of operations, performance, business prospects, and opportunities of the Company. Forward-looking information may contain such words as “anticipate”, “believe”, “continue”, “could”, “expect”, “intend”, “plan”, “will” or similar expressions suggesting future conditions or events. In particular, this press release includes forward-looking statements relating to the proposed timing of completion of the Offering and the anticipated use of the net proceeds of the Offering. Such forward-looking information is based on current expectations that involve a number of risks and uncertainties which could cause actual results to differ from those anticipated. These risks include, but are not limited to, the failure or delay in satisfying any of the conditions to the completion of the Offering. Additional information on these and other factors that could affect AGI's operations, financial results or dividend payments are described under “Risks and Uncertainties” and "Forward-Looking Information" in our most recently filed Management's Discussion and Analysis and Annual Information Form. These factors should be considered carefully, and readers should not place undue reliance on the Company’s forward-looking information. We cannot assure readers that actual results will be consistent with this forward-looking information and we undertake no obligation to update such information except as expressly required by law.
References to “EBITDA” are to the unaudited earnings of Milltec before income taxes, finance costs, depreciation and amortization. EBITDA is a non-standardized financial measure that is not calculated or presented in accordance with International Financial Reporting Standards ("IFRS"). Accordingly, it may not be possible to compare Milltec's EBITDA with EBITDA or other financial measures of other companies having the same or similar businesses. We use these non-IFRS financial measures such as EBITDA in addition to, and in conjunction with, results presented in accordance with IFRS (or the accounting principles used to prepare Milltec's financial statements) as we believe they reflect an additional way of viewing aspects of a company's operations that may provide a more complete understanding of factors and trends affecting the company's business. Investors are cautioned that EBITDA should not replace profit or loss as indicators of Milltec's performance, or cash flows from operating, investing, and financing activities as a measure of Milltec’s liquidity and cash flows. AGI's method of calculating Milltec's EBITDA may differ from the methods used by other issuers.
In addition, the financial information in this news release relating to Milltec's sales and EBITDA is derived from Milltec's financial statements, which are prepared in accordance with generally accepted accounting principles in India, which differ in some material respects from IFRS, and accordingly may not be comparable to the financial statements of AGI or other Canadian public companies.