Ag Growth International Inc. announced the acquisition of substantially all of the operating assets of Airlanco, a manufacturer of aeration products and filtration systems that are sold primarily into the commercial grain handling and processing sectors. The purchase price of USD $11 million plus closing costs and a working capital adjustment will be financed from Ag Growth’s acquisition line of credit and represents a valuation of approximately five times Airlanco’s normalized fiscal 2010 EBITDA.
Airlanco is located in Falls City, NE and has traditionally served customers headquartered or located in North America. The Company had sales of approximately $11 million in 2010, operating out of an 80,000 square foot facility with 65 employees.
“We are very excited to add a respected company like Airlanco to our family”, said Gary Anderson, CEO of Ag Growth. “Airlanco is a key player in the aeration fan market in the United States and is recognized as a reputable solution provider for the high capacity fan market. In addition, Airlanco provides dust collection and filtration systems across a broad range of customers, with a strong focus in commercial grain handling and several processing sectors. The Airlanco brand is known for its premium quality and commitment to customer satisfaction. Airlanco will add key product categories to the AGI catalog, strengthening our 'one-stop shop' concept and in turn allowing us to better serve new and existing customers in the global marketplace.”