Ag Growth International Inc. of Winnipeg has bought Mepu Oy, a Finnish maker of portable and stationary grain drying systems for $11.7 million.
Mepu Oy, known as Mepu, was established in 1952.
Sales of its farm and commercial grain drying systems are concentrated in Finland and Eastern Europe and have averaged $19 million over the last three fiscal years.
Ag Growth chief executive officer Rob Stenson said the acquisition provides a toe hold to serve growing markets in Eastern Europe and Russia.
“Mepu’s product line is a strong fit with Ag Growth’s existing catalogue and we expect both companies will benefit from the other’s distribution network and product offering,” Stenson said.
The deal will be financed from Ag Growth’s cash on hand.
