Ag Growth International Inc. has announced that the previously disclosed transaction to acquire 100% of the shares outstanding of Milltec Machinery Limited has been completed.
The purchase price for Milltec was US$109.5 million, plus the potential for up to an additional US$38.4 million based on the achievement of EBITDA targets. The transaction was funded by AGI's revolving credit facility. For the twelve months ended 31 January 2019, Milltec's sales and EBITDA were US$56.2 million and US$10.1 million, respectively.
"The acquisition of Milltec marks an important step for AGI as we expand into rice equipment and enter the large, and rapidly growing, markets in India. Milltec now forms the foundation of our platform in India as we build a footprint to deliver our complete 5-6-7 strategy. India is one of the world's largest producers and consumers of all agriculture products and will invest heavily in the infrastructure required to facilitate the daily lives of over a billion people. Milltec joins AGI at an inflection point in its journey from a small regional company to a Pan-India business. We will invest and collaborate to accelerate this journey. The founders of Milltec, and a very talented team, are joining AGI in the pursuit of our goal to supply the world's food infrastructure," said Tim Close, president and CEO of AGI.