An American east coast investment group has acquired an Ontario farm machinery maker.
Salford Machinery manufactures tillage and seeding tools for a worldwide market, including the former Soviet Union. It has had major investors from that region for years, and it was largely that majority stake that was sold to the investment company.
Anson Boak of Salford said the new owner plans to expand the company’s manufacturing facilities in southern Ontario and Iowa.
“Iowa could benefit from some investment, and GenNx360 (Capital Partners) seem very committed to growing their investment in us,” he said.
Carmen Rojas from New York City, where GenNx360 is based, said the seven-year-old group was looking for an agricultural investment that was involved in manufacturing.
“It was a good investment that fits well with some of our principals’ experience,” she said.
“There are some mega-trends out there in the world, and agriculture and food are one of the big ones, so it makes sense to position your money where will grow.”
GenNx360 said it plans to invest in Salford’s existing infrastructure as well look for bolt-on acquisitions that will expand its business.
Salford’s dealer network in the former Soviet Union, which is held by its former owners, will remain intact and was one of the features the GenNx360 found attractive.
“They have a great footprint in North America, but are connected in other markets as well, ensuring there are generally solid sales opportunities,” Rojas said.