WINNIPEG, MANITOBA, CANADA — Ag Growth International Inc. (AGI) on July 18 said it has acquired Mitchell Mill Systems Canada Ltd. and its U.S. affiliate Mitchell Mill Systems USA. Based in Newton, Ontario, Canada, with a second facility in Joplin, Missouri, U.S., Mitchell is a manufacturer of material handling equipment used in grain, fertilizer, animal feed, food processing, and industrial applications. The company’s products include conveyor systems, bucket elevators, screw conveyors, and drag conveyors.

Financial terms of the transaction were not disclosed.

“The acquisition of Mitchell expands AGI’s commercial business into eastern Canada, expands our reach in the U.S., while also providing an expanded product offering”, said Tim Close, chief executive officer (CEO) of AGI. “The expanded product lines move AGI into new markets and we welcome new customers in the adjacent grain and food processing space. We are very excited to have the whole Mitchell team joining AGI in pivotal roles as we extend our capabilities into new markets. The team will continue to be led by Todd and Stephen Mitchell and we congratulate them on building an excellent business focused on quality, reliability and service.”

Mitchell Mill had revenues of approximately $30 million in the fiscal year ended Feb. 28 and the financial consideration of the transaction is expected to be comprised of a fixed amount payable upon closing, and a contingent amount payable over three years based on the achievement of EBITDA targets. The amount payable upon close will be funded from AGI’s existing revolving credit facility, the company said.

Established in 1996, AGI has manufacturing facilities in Canada, the U.S., Italy, Brazil and the United Kingdom, and distributes its products globally. The company has pursued a strategy of organic growth complemented by strategic acquisitions, including the acquisitions of Batco Manufacturing (specialty crop belt conveyors), Wheatheart Manufacturing (grain handling equipment), Westfield Industries (portable grain augers), Grain Guard and Keho (aeration and grain drying equipment), Hi Roller (enclosed belt conveyors), Twister (galvanized grain bins), Union Iron (material handling and storage equipment), Tramco (bulk material handling equipment), Airlanco (air management systems), REM (grain vacs), Westeel (storage), PTM (grain handling equipment, including chain or belt conveyors and bucket elevators), FRAME (material handling and storage), VIS (fertilizer handling and storage equipment), Entringer (material handling and storage) and NuVision (turnkey fertilizer solutions).