Ag Growth International Inc. (TSX: AFN) (“Ag Growth” or the “Company”) today announced the acquisition of 100% of the outstanding shares of Mepu Oy (“Mepu”)(, a manufacturer of portable and stationary grain drying systems. The purchase price of CAD $11.7 million (8.75 million Euros) will be financed from Ag Growth’s cash on hand and represents a valuation of approximately 5.1 times Mepu’s trailing twelve month EBITDA and 5.8 times Mepu’s average EBITDA over the last three years.

Mepu was established in 1952 and is based in Ylane, Finland. Sales of Mepu’s farm level and commercial grain drying systems are concentrated in Finland and Eastern Europe, primarily in the Baltic region and Belarus, and have averaged Euros 14.0 million over the last three fiscal years. “Mepu has experienced consistent growth under the leadership of Arto Sainio”, said Rob Stenson, Chief Executive Officer of Ag Growth. “We are thrilled that Arto has agreed to stay in the leadership role for a sufficient period of time to help us manage the transition.”

Mr. Stenson continued, “We are very excited to add this profitable and well respected company to the Ag Growth family. Mepu’s product line is a strong fit with Ag Growth’s existing catalogue and we expect both companies will benefit from the other’s distribution network and product offering. In addition, Mepu’s geographic location provides our first corporate footprint on the doorstep of growth markets in Eastern Europe and Russia. Mepu’s physical presence in this strategically important region will provide a platform for the introduction of our existing farm catalogue into an established dealer network and will complement our commercial equipment strategy in these regions.”