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Ag Growth acquires Franklin Enterprises for $7.1m

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Short-line manufacturer Ag Growth International (TSX: AFN) has acquired custom manufacturer Franklin Enterprises for $7.1 million, it said Friday.

Winnipeg-based Franklin, which was founded in 1979, provides manufacturing, design and engineering services across North America. It operates from a facility of approximately 100,000 square feet and has a wide range of Computer Numerical Control (CNC) fabrication equipment including CNC plasma cutting, CNC punching machines and CNC brakes, as well as laser cutters and a welding department that includes several robotic machines.

Though Ag does not anticipate Franklin will contribute significant EBITDA in the short-term, the acquisition is expected to provide the company with considerable manufacturing flexibility and enhanced prototyping and design capabilities, it said.

Franklin will continue as a custom manufacturer, but will also manufacture components for several of Ag's divisions, reducing costs and increasing production capacity.

Franklin's management, headed by John Gergely will remain on board.

Ag Growth is a manufacturer of portable and stationary grain handling, storage and conditioning equipment, including augers, belt conveyors, grain storage bins, grain handling accessories, grain aeration equipment and grain drying systems. The company has nine manufacturing facilities in Canada, the U.S. and Finland and it distributes products in 48 states, nine provinces, and internationally.

Quick facts: Ag Growth International Inc

Price: 32.1 CAD

TSX:AFN
Market: TSX
Market Cap: $600.69 m
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