MemberNews: AGI Increases Presence in Fertilizer Sector with Acquisition of GJ Vis Enterprises

WINNIPEG, MANITOBA–(Marketwired – Nov. 30, 2015) – Ag Growth International Inc. (TSX:AFN) ("AGI" or the "Company") today announced the acquisition of GJ Vis Enterprises Inc. ("Vis"). Winnipeg-based Vis is a manufacturer of material handling equipment used in the fertilizer, feed and grain sectors. Vis provides AGI with new capability and experience in the planning, design and manufacture of high throughput industrial fertilizer handling equipment. The purchase price of $15 million represents a valuation of approximately 4.5 times Vis' trailing twelve month normalized EBITDA, with $10 million payable upon closing of the transaction and $5 million payable over two years based on the achievement of EBITDA targets. The amount payable upon close will be funded from AGI's cash balance.

"We are very pleased to welcome the entire Vis team to the AGI family of companies," said Tim Close, President of AGI. "Vis marks our entry into providing equipment and services for the commercial fertilizer and feed infrastructure in Western Canada. This acquisition is a natural extension of our current product catalogue and capabilities and our first significant move to capture additional revenue synergies from our smooth wall bin product line that we acquired with Westeel earlier this year. George and Jim Vis join our AGI Commercial Division as Vice Presidents to continue delivering leading solutions and products to their existing customers as well as to work closely with the other AGI Commercial divisions. We look forward to working with the Vis team to expand their business within Canada and into international markets.

Full Release: http://www.marketwired.com/press-release/agi-increases-presence-in-fertilizer-sector-with-acquisition-of-gj-vis-enterprises-tsx-afn-2077658.htm