BLOG

AGI announces strategic food platform acquisition

22 February 20222 min reading

Ag Growth International (AGI), a provider of solutions for global food infrastructure including seed, fertilizer, grain, feed, and food processing systems, announced that it has completed the acquisition of Eastern Fabricators.

Eastern specializes in the engineering, design, fabrication, and installation of high-quality stainless-steel equipment and systems for food processors. Eastern operates three facilities in Canada with two in Prince Edward Island and one in Ontario. Eastern serves a range of customers across North America and has developed strong relationships with some of the world’s largest multinational food processors. As of October 2021, on a trailing twelve-months basis, Eastern generated approximately $26M in revenue and $8M in adjusted EBITDA.

“AGI Food has grown rapidly over the past several years as we brought together an outstanding team that delivers a unique combination of design, supply, and project management to food processors globally,” noted Tim Close, President & CEO of AGI. “Eastern builds on a solid foundation in our Food platform, bringing a very talented team along with market leading products, services, manufacturing capacity and, most importantly, customer relationships built on years of high-quality execution. This newly expanded team will drive strong revenue synergies as Eastern is integrated into the Food platform. We welcome the entire Eastern team to the AGI family and look forward to accelerating the growth of Eastern and our overall Food platform.”

Consideration for the transaction includes an upfront purchase price of $29.25M payable upon closing plus the potential for an additional $15.75M in earn-outs based on the achievement of financial targets in future years. The transaction will be funded primarily through AGI’s senior debt facilities.

 


Articles in News Category
14 April 20162 min reading

CIMMYT’s new project to help African farmers

CIMMYT and its partners announced their Stress Tolerant Maize for Africa (STMA) project to reduce t...

20 July 20192 min reading

UK government launches consultation into adding folic acid to flour to cut birth defects

The UK government has launched a consultation into whether folic acid should be added to flour to p...

01 April 20213 min reading

Second World Flour Day celebrated worldwide with many activities

The FlourWorld Museum in Wittenburg, Germany is the initiator of World Flour Day, and as of this ye...