V-Bins Acquisition adds to company’s existing business manufacturing grain handling equipment
Norstar Industries, a manufacturer of grain handling equipment in Morris, Man., has bought V-Bins, which makes smooth walled bins for fertilizer, feed and grain storage.
Norstar announced the acquisition Dec. 26 but terms of the deal were not released.
Cam Cornelsen, sales manager for Norstar, said the acquisition diversifies and complements his company’s existing product line. It can now offer grain handling and storage products to its customers.
“We look forward to being a one stop shop for grain management on the farmyard,” he said.
“We feel there’s a synergy of us going to the marketplace, with regards to the dealers that we work with.”
Norstar’s purchase of V-Bins, better known as Vidir bins, was finalized in December but it took nearly a year to consummate the deal.
“We were first approached by Vidir last February,” Cornelsen said.
V-Bins, also based in Morris, has manufactured smooth walled hopper bins since the company was founded in 2003.
Norstar will continue to manufacture bins at the existing V-Bins plant in Morris.
“We will continue to run two plants. Our original plant (makes) grain handling (equipment) and the second plant here will be grain storage,” Cornelsen said.
The two plants will employ 60 to 70 people, and Norstar will likely generate $10 to $15 million in revenue in 2013, he said.
“There is a natural synergy with smooth wall hopper bottom bins, bucket elevators and cross augers,” said Norstar president Ray Waldner, who founded the company with Cornelsen nearly a decade ago.
Norstar manufactures equipment to unload flat-bottomed grain bins as well as bucket elevators and other grain handling equipment, which it sells to customers from Quebec to British Columbia, into the United States and a few other markets, including Australia.
The market scope for the company’s storage bins will be slightly smaller, focusing on Manitoba, the eastern half of Saskatchewan, North Dakota and northern Minnesota.
“With the bins … there’s a 500 mile radius, which is your optimal transport range,” Cornelsen said.
“From Morris, we probably (reach) into the centre parts of Saskatchewan. Certainly, there are clients in Alberta and we won’t say no to anybody.”