Valmont to Acquire Remaining Shares of AgSense®
January 02 2020 - 4:35PM
Business Wire
Valmont Industries, Inc. (NYSE: VMI), a leading global provider
of engineered products and services for infrastructure development
and irrigation equipment and services for agriculture, today
announced that it has entered into a definitive agreement to
acquire the remaining 49% stake in AgSense for a purchase price of
approximately $42 million. The acquisition is expected to close
later this month and will be funded with cash on hand. Operating
results for AgSense have been included in the Company’s
consolidated financial statements since a 51% stake was acquired in
August 2014. The transaction will not impact revenue or operating
income but will be EPS accretive in fiscal 2020, primarily from a
change in earnings attributable to noncontrolling interests.
Founded in 2003, AgSense and its industry-leading remote
management technology has led to the most comprehensive offering of
integrated, advanced irrigation technology solutions available to
the market, growing to approximately 95,000 connected devices
globally. “We are very pleased with this acquisition and its
performance,” said Stephen G. Kaniewski, Valmont President and
Chief Executive Officer. “Completing our ownership of AgSense
directly aligns with our strategic priority to accelerate our
global technology leadership position. Its profitable, recurring
revenue service model has provided a growth platform for technology
sales that will continue to be beneficial to our customers and
shareholders.”
Len Adams, Group President, Valmont Irrigation, added, “Our goal
has always been to fully own AgSense, so this transaction
represents the achievement of another major milestone as we
continue to execute on our technology strategy. We have
demonstrated that our team and our dealers are able to successfully
work with technology partners over time. We welcome the AgSense
team to our technology sales group, and are excited to continue
investing in innovation to meet growers’ needs around the
world.”
About Valmont Industries, Inc. Valmont is a global
leader, designing and manufacturing engineered products that
support global infrastructure development and agricultural
productivity. Its products for infrastructure serve highway,
transportation, wireless communication, electric transmission, and
industrial construction and energy markets. Its irrigation
equipment and services for large-scale agriculture improves farm
productivity while conserving fresh water resources. In addition,
Valmont provides coatings services that protect against corrosion
and improve the service lives of steel and other metal products.
For more information, visit valmont.com
Concerning Forward-Looking Statements This release
contains forward-looking statements, within the meaning of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based on assumptions that management
has made in light of experience in the industries in which Valmont
operates, as well as management’s perceptions of historical trends,
current conditions, expected future developments and other factors
believed to be appropriate under the circumstances. As you read and
consider this release, you should understand that these statements
are not guarantees of performance or results. They involve risks,
uncertainties (some of which are beyond Valmont’s control) and
assumptions. Although management believes that these
forward-looking statements are based on reasonable assumptions, you
should be aware that many factors could affect Valmont’s actual
financial results and cause them to differ materially from those
anticipated in the forward-looking statements. These factors
include among other things, risk factors described from time to
time in Valmont’s reports to the Securities and Exchange
Commission, as well as future economic and market circumstances,
industry conditions, company performance and financial results,
operating efficiencies, availability and price of raw material,
availability and market acceptance of new products, product
pricing, domestic and international competitive environments, and
actions and policy changes of domestic and foreign governments. The
Company cautions that any forward-looking statement included in
this press release is made as of the date of this press release and
the Company does not undertake to update any forward-looking
statement.
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version on businesswire.com: https://www.businesswire.com/news/home/20200102005518/en/
Renee Campbell, Investor Relations 402-963-1057
Valmont Industries (NYSE:VMI)
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