Some prairie agricultural manufacturers are in acquisition mode.
Bourgault Industries Ltd. of St. Brieux, Sask., has bought bale processor manufacturer Highline Manufacturing Inc. of Vonda, Sask.
And MacDon Industries Ltd. of Winnipeg is exploring the purchase of Saskatoon-based Precision Metal Fabricating’s harvest equipment line.
The Bourgault-Highline deal will leave Highline intact in Vonda with the exception of its name, which will trade Inc. for Ltd., said Gerry Bourgault, president of that company.
Highline founder Raymond Bussiere said the sale will allow his former company to grow while remaining in Vonda because it can take advantage of the larger Bourgault’s purchasing and marketing abilities.
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BSE hurt sales of Highline cattle feed processing equipment, but Bourgault said the new, wholly owned subsidiary is bouncing back with the cattle market.
Bourgault plans to expand Highline’s sales into international markets using its existing foreign dealer and marketing networks.
Foreign markets are also sparking MacDon Industries Ltd.’s interest in expanding as it looks into buying the harvest equipment business of Precision Metal Fabricating.
“We have a lot of history in Europe and the East, and with Precision’s assembly arrangements in Hungary, it’s a good fit there … but a very good line of products and excellent market opportunities for us across North America and worldwide,” said Gary MacDonald of MacDon.
Precision’s harvest equipment line is based on that company’s’ Rake-Up and Swath Master combine headers.
Rake-Up combine headers began as an aftermarket item, but are now available as standard equipment on most of the major manufacturers’ machines including Agco, New Holland and Caterpillar.
Gary MacDonald said that portion of the business is attractive and is a good fit with MacDon’s existing harvesting and forage equipment.
Precision owner Loren Katzenberger had hoped to sell the company to employees but when that process failed, he approached MacDon.
Should the deal be completed, Katzenberger said the 90 employees working at Precision will be laid off. MacDonald said his company’s existing 46,500 sq. metre factory could handle the production with some additional people.
The company has signed a letter of intent to buy the Precision harvest line.
Precision is still seeking a new home for its tillage line of Phillips rotary harrows and Smart Till cultivators, which are not part of the potential MacDon purchase.
