Ag Growth acquires Eastern Fabricators
Ag Growth International acquires Eastern Fabricators that specializes in the engineering, design, fabrication and installation of stainless-steel equipment and systems for food processors. Eastern operates three facilities in Canada with two in Prince Edward Island and one in Ontario.
“AGI Food has grown rapidly over the past several years as we brought together an outstanding team that delivers a unique combination of design, supply and project management to food processors globally,” said Tim Close, president & CEO of AGI. “Eastern builds on a solid foundation in our food platform, bringing a very talented team along with market leading products, services, manufacturing capacity and, most importantly, customer relationships built on years of high-quality execution. This newly expanded team will drive strong revenue synergies as Eastern is integrated into the food platform. We welcome the entire Eastern team to the AGI family and look forward to accelerating the growth of Eastern and our overall food platform.”
Consideration for the transaction includes an upfront purchase price of $29.25M payable upon closing plus the potential for an additional $15.75M in earn-outs based on the achievement of financial targets in future years. The transaction will be funded primarily through AGI’s senior debt facilities.