AG Growth buys Kansas manufacturer
by The Canadian Press
Ag Growth International Inc., a Winnipeg company that owns several manufacturing businesses focused on farming equipment, is acquiring Tramco Inc.
Ag Growth International Inc., a Winnipeg-based company that owns several manufacturing businesses focused on farming equipment, says it’s acquiring Tramco Inc. for US$21.3 million.
Tramco, which has its headquarters in Wichita, Kan., makes heavy duty chain conveyors and related handling products that are sold primarily into the grain and oilseed processing sectors in the United States and internationally.
In addition to its U.S. operations, Tramco has a manufacturing plant in England, a sales office in the Netherlands and a strategic alliance in China.
Prior to the latest acquisition, Ag Growth had six manufacturing facilities in Western Canada, three plants in the United States and a Finland division.
The company didn’t disclose initially how it would finance the transaction.
Earlier Monday, Ag Growth said it adopted a shareholder rights plan that gives its board the ability to trigger a poison pill if a person or group buys more than 20 per cent of the company’s common shares.
Ag Growth said it wasn’t aware of any attempt to take over the company.
It plans a conference call on Wednesday after markets close.
The company is going through internal changes as well. Its chief executive, Rob Stenson, died in October at age 44. He had been diagnosed with cancer in September.
The company appointed Gary Anderson as Stenson’s replacement on Dec. 13. He had previously been the company’s chief operating officer.