Westeel, a famous name on the Prairies, is now part of Ag Growth International, a global manufacturer of grain handling equipment.
AGI, which is based in Winnipeg, announced yesterday it had completed a deal to purchase Westeel for $221.5 million.
“The strategic acquisition of Canada’s leading brand in grain storage further establishes AGI as a global leader in grain handling and storage solutions,” said Gary Anderson, AGI’s chief executive officer.
AGI builds storage bins, grain augers, belt conveyors, aeration equipment and grain drying systems at manufacturing plants in Canada, the United States, the United Kingdom and Finland.
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Its brands include Batco Manufacturing conveyors, Hi Roller conveyors, Westfield Industries augers, Tramco bulk handling equipment and Twister grain bins.
AGI released its plan to purchase Westeel in November.
Anderson said AGI was eyeing Westeel for a while because grain storage bins provided a complementary product to AGI’s lineup. It pounced when an opportunity arose last fall.
“The reality is that it (became) available…. It really wasn’t at other times,” said Anderson. “We had to go our own way for a while but never quit our desire to dance with the prettiest girl in the room.”
In 2014, the combined revenue of the two companies was more than $600 million. AGI said the Westeel acquisition would strengthen its presence in the Canadian market and balance its profile in North America.
Prior to the deal, AGI generated 26 percent of its revenue from Canadian sales. With Westeel onboard, the Canadian percentage will grow to 44 percent.
AGI’s revenue from U.S. sales will shift from 55 percent to 39 percent of total revenue. International sales are forecast at 17 percent of revenue.
The name Westeel, or Westeel Rosco, is hard to miss in Western Canada. The brand is painted on thousands of grain storage bins from Steinbach, Man. to Stony Plain, Alta.
The company, founded in 1905 as a ceiling and roofing firm in Winnipeg, began manufacturing steel grain storage bins in the 1920s.
With files from Sean Pratt
robert.arnason@producer.com
