New Subsidiary Expected To Strengthen Art’s Way’s Agricultural Product Offerings
Art’s Way Manufacturing Co., Inc., (NASDAQ:ARTW) a leading manufacturer and distributor of agricultural machinery, equipment, and services, announces that it has completed its acquisition of assets from Universal Harvester Co., Inc. (“UHC”), of Ames, Iowa, a leader in the fabrication of reels for combines and swathers.
The consideration paid in the transaction consisted of approximately $3 million in cash and 5,000 shares of Art’s Way Manufacturing common stock. Art’s Way Manufacturing has formed a wholly-owned subsidiary, Universal Harvester by Art’s Way Manufacturing Co. This new subsidiary will be consolidated with Art’s Way Manufacturing for financial reporting purposed and is expected to continue to operate out of the former UHC plant.
Ardis Heidebrink, formerly the President of UHC, has been hired as the General Manager of the new subsidiary and will report to Art’s Way Manufacturing Co., Inc. Chief Executive Officer, Carrie Majeski. All former UHC employees have been retained.
J. Ward McConnell Jr., Chairman of the Board of Directors said, “We are very pleased to have UHC as part of the Art’s Way Manufacturing family. This acquisition is both strategic and highly complementary to our existing operations and product lines.
With its history of quality products and dedication to customer service, it will be a welcome addition. Last year, UHC had revenue of approximately $4 million and we anticipate the acquisition will be immediately accretive. I want our shareholders to know, we intend to continue to be aggressive in looking for opportunities that will help build and grow shareholder value.”
Art's Way manufactures and distributes farm machinery niche products including animal feed processing equipment, sugar beet defoliators and harvesters, land maintenance equipment, crop shredding equipment, round hay balers, plows, hay and forage equipment, manure spreaders and top and bottom drive augers. After-market service parts are also an important part of Art’s Way’s business. Art’s Way Manufacturing has three wholly owned subsidiaries. Art's Way Vessels, Inc. manufactures pressurized tanks and vessels; Art's Way Scientific, Inc. manufactures modular animal confinement buildings and modular laboratories, and [Universal Harvester by Art’s Way Manufacturing Co.] manufactures reels for combines and swathers.
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