Winnipeg-based Ag Growth International (AGI) says it has acquired 100 percent of the shares in U.S. grain storage, handling and drying equipment manufacturer Global Industries.
AGI paid US$100 million for the company, which makes grain bins, portable and stationary grain handling equipment, grain drying and aeration equipment, and steel buildings. Global’s main operations are located in Nebraska and Kansas, with additional production capacity in South Africa, and warehouses in the U.S., Europe, Australia and Africa.
AGI, which bought bin manufacturer Westeel for C$222 million in 2014, says the acquisition of Global Industries adds a grain dryer line and stationary on-farm handling capabilities to the company’s product lineup, while also improving its grain bin and handling distribution in the U.S. and internationally.
“We are excited today to announce that we have acquired the Global family of companies. This highly strategic transaction brings key products, very talented people, and great brands into the AGI group, and significantly increases our U.S. manufacturing capabilities and distribution channels,” said Tim Close, President and Chief Executive Officer of AGI.
Global Industries operates four main divisions, selling products under multiple brands (info supplied by AGI) :
- MFS, York, Stormor and Brownie: Based in Grand Island, Nebraska, these brands design and manufacture storage bins, stationary grain handling equipment, and structural components for both farm and commercial applications. Bin sales are primarily in the U.S. Great Plains region, which has minimal geographic overlap with AGI’s Westeel bin sales, and the stationary on-farm grain handling equipment is a new addition to AGI’s product portfolio.
- Hutchinson and Mayrath: Produces portable and stationary grain handling equipment, including bin unloads, augers, conveyors, and grain loop systems in Clay Center, Kansas. Bin unloading systems are the division’s largest product line, and grain loop products, which enable the connection of several bins into one storage system, are a new addition to AGI’s product portfolio.
- NECO: Based in Omaha, Nebraska, NECO produces grain dryers, aeration, and handling equipment. A new product line for AGI, grain dryers are increasingly important in Canadian markets as management expects corn and soybean acreage to increase.
- Sentinel Building Systems: Designs and builds all-steel and wood-steel buildings in Albion, Nebraska. The buildings are primarily for agricultural uses, such as poultry buildings and partially enclosed storage structures for feed, as well as commercial and self-storage applications. Sentinel also produces a line of light-duty tower and catwalk systems.
In a letter posted on Facebook, Global Industries President Doug Ford called the sale to AGI “an opportunity to open new areas where we can effectively market our product lines as well as enabling us to be more of a full-service provider through access to the myriad of products offered by other AGI companies.”
AGI’s existing brands includes Westeel, Westfield, Wheatheart, REM, Batco, Twister, Grainguard, Storm and Airlanco.
Related: Ag Growth International Buying Westeel For $221.5M