Ag Growth International buying stainless steel equipment maker Eastern Fabricators

WINNIPEG – Ag Growth International Inc. says it has signed a deal to buy Eastern Fabricators, a maker of stainless steel equipment for food processors.

Under the agreement, AGI has agreed to pay $29.25 million, plus up to an additional $15.75 million in earn-outs based on the achievement of certain financial targets.

Eastern has two facilities in Prince Edward Island and one in Ontario.

AGI chief executive Tim Close says Eastern brings a talented team along with market leading products, services, manufacturing capacity and, most importantly, customer relationships.

The company says the transaction will be funded primarily through its senior debt facilities.

AGI is a producer of seed, fertilizer, grain, feed and food processing systems.

This report by The Canadian Press was first published Jan. 4, 2022.

Companies in this story: (TSX:AFN)