AGI Announces Acquisitions, Financial Results

Ag Growth International (AGI) has acquired Intellifarms, which provides hardware and software for monitoring grain conditions in storage for growers and grain processors.

Intellifarms launched SureTrack Pro in 2018, which is an online system designed to connect customers—processors, seed companies and cooperatives—with growers, which helps facilitate the negotiations and the delivery process.

Analysts from Desjardins Capital Markets said the acquisition “serves to expand AGI’s controls, technology and project management capabilities,” and is “in line with company’s growth strategy of becoming a global provider of bundled solutions to farm and commercial customers.”

IntelliFarms CEO Todd Sears, COO Adam Weiss and the rest of the team are expected to join AGI.

In other news, AGI will acquire 100 percent of the outstanding shares of Milltec Machinery Limited.

Milltec is headquartered in Bangalore, India, and operates four production facilities that manufacture rice milling and processing equipment.

Milltec’s founders will remain with the company as managing directors. The transaction is expected to close by the end of this month.

Finally, AGI reported record levels of trade sales and earnings before income, tax, depreciation and amortization (EBITDA) for the year ended Dec. 31.

The company reported a 22.3 percent increase in EBITDA for the year and a 24.5 percent increase in trade sales.

In the fourth quarter, EBITDA increased by 42 percent compared to the same quarter last year, and trade sales were up by 27.7 percent.

“A strong fourth quarter closed off a record year for AGI in 2018,” said President and CEO Tim Close.

The company saw a 12.8 percent gain in organic sales, Close said.

Farm sales increased over 2017 as higher sales in the U.S. and contributions from acquisitions more than offset an expected decrease in Canada.

Sources: Ag Equipment Intelligence, World-Grain.com

Member since 1996 | aggrowth.com