Ag Growth International Inc. (TSX: AFN) (“Ag Growth” or the “Company”) today announced the acquisition of the assets of Franklin Enterprises Ltd. and certain related entities (“Franklin”) (www.franklinenterprises.com), for $7.1 million plus working capital, effective October 1, 2010. Franklin is a custom manufacturer that provides manufacturing, design and engineering services across North America. Franklin was established in 1979 and is based in Winnipeg, Manitoba.
Franklin operates from a facility of approximately 100,000 square feet and has significant manufacturing flexibility and a wide range of modern and sophisticated Computer Numerical Control (“CNC”) fabrication equipment including CNC plasma cutting, CNC punching machines and CNC brakes, as well as laser cutters and a modern welding department that includes several robotic machines. “We are very fortunate that the opportunity to acquire Franklin was presented to us”, said Rob Stenson, Chief Executive Officer of Ag Growth. “We are very pleased that the management of Franklin, headed by John Gergely, will continue in their positions post-acquisition.”
Mr. Stenson continued, “The acquisition of Franklin greatly increases our manufacturing capabilities. Although we do not anticipate Franklin will contribute significant EBITDA in the short-term, the addition of Franklin provides Ag Growth with considerable manufacturing flexibility and enhanced prototyping and design capabilities. Franklin will continue as a custom manufacturer but will also manufacture components for several of our divisions thereby reducing costs and increasing our production capacity, particularly in periods of high in-season demand.”