WINNIPEG, MANITOBA, CANADA— Ag Growth International Inc. (AGI) on Jan. 4 announced it has completed the acquisition of Eastern Fabricators, Prince Edward Island, Canada, for an upfront purchase price of C$29.25 million payable upon closing plus the potential for an additional C$15.75 million in earn-outs based on achievement of financial targets in future years.
Eastern 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. As of October 2021, on a trailing 12-months basis, Eastern generated approximately C$26 million in revenue and C$8 million in adjusted EBITDA.
“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 and chief executive officer 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.”
AGI said it plans to fund the transaction primarily through its senior debt facilities.