World Grain - May 2016 - 110

SUPPLIER NEWS

AGI acquires Brazilian manufacturer
WINNIPEG, MANITOBA, CANADA - Ag Growth International
Inc. (AGI) announced on March 9 the acquisition of Entringer S.A., a
Brazilian-based manufacturer of grain bins, bucket elevators, dryers
and cleaners. Founded in 1988 and strategically located in Brazil's
Sao Paulo province, Entringer provides AGI with a measured entry
into the rapidly expanding agricultural sector in Brazil, AGI said.
"Despite the economic and political turmoil in Brazil, the agriculture sector has remained a positive point for the country," said Tim
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the country have had a substantial impact on the currency, creating
what we believe to be an opportunistic time to enter the market and
establish a platform for growth."
Entringer sales in 2015 were R$43 million ($11,729,678) and
normalized EBITDA over the previous six years has averaged approximately R$5.6 million, with peak normalized EBITDA of R$9.9
million in 2013 and negative EBITDA of approximately R$1.3 million in 2015. Terms of the transaction included payment of R$30
million upon closing which represents a multiple of 5.4 times against
the previous six-year average EBITDA. The agreement includes a
R$15 million earn-out provision based on Entringer meeting certain
EBITDA thresholds.
"The Brazilian agriculture market continues to gain momentum

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acres are converted to grain, new seed technology is deployed and
producers make better use of fertilizer to impact crop yields," Close
VDLG³%UD]LOKDVDVXEVWDQWLDOGH¿FLWLQWKHLQIUDVWUXFWXUHDQGHTXLSment required to properly store, condition, and handle the growing
grain crop. The combination of the growing crop and the lack of
infrastructure create an excellent market for AGI. Historically, taxes
and tariffs that exist in Brazil have restricted our ability to compete
in this exciting market and with today's announcement we now have
manufacturing capabilities within Brazil. This expanding footprint is
a continuation of our global growth strategy and forms a key element
of our efforts to mitigate the risks inherent from the variability of
regional events in agriculture."
"The acquisition of Entringer marks the beginning of what we
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in Brazil," Close said. "With Entringer, we are acquiring a Brazilian focused product line including grain dryers and grain cleaners
which are new to AGI, an excellent team with an established track
record of outstanding customer service, installation capabilities, a
distribution network, customer relationships, an excellent operations team, a robust pipeline, and well situated land for a green¿HOGIDFLOLW\´

Global Industries' Merino marks 15-year anniversary
GRAND ISLAND, NEBRASKA, U.S. - Global Industries, Inc. announced that Alejandro D. Merino recently celebrated 15 years of
service to the organization as Global's regional sales manager for the
Latin American market.
A native of Argentina and a current resident of Buenos Aires, Merino has a mechanical engineering degree from Argentina's National
Technological University, and has completed numerous postgraduate
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"Alejandro Merino has amassed a wide range of knowledge and
experience in grain storage and handling systems and, much like
Global Industries, is widely known for responsive customer service,"
said Global Vice-President of International Sales John Haugh. "His

skills in budgeting, contracts, negotiation and
project management have assisted Global Industries' customers around the world in designing
DQG EXLOGLQJ SURMHFWV WKDW DUH IXQFWLRQDO HI¿cient and respected throughout the industry for
including the proper equipment to meet customer objectives at the lowest possible expense."
Global Industries, headquartered in Grand
Island, Nebraska, U.S., operates four divisions
Merino
that specialize in the design, manufacture and
distribution of grain storage, handling and conditioning products, as
well as other agricultural-related equipment and services worldwide.

SternMaid upgrades its warehouse facilities
AURORA, ILLINOIS, U.S. - SternMaid America announced in late
2015 that it invested $100,000 to modernize its warehouse in Aurora,
Illinois, U.S. New high-level racks have increased storage capacity
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barcode scanning equipment has been installed for computer-aided realtime tracking of goods in storage and processing via an Enterprise Resource Planning system (ERP).
Pallet barcodes and WiFi-scanning of the movement of all goods
allow SternMaid America to tell where each individual pallet is at all
times. When products are loaded onto a truck, they are scanned for the
last time. A delivery note can only be printed if all of the pallets making
up the consignment have been recorded. This avoids the risk of incorrect
or incomplete loading.
"To reduce costs as well as carbon emissions, many of our customers are dispensing with unnecessary shipping of goods and are instead
VXSSOLQJWKHLURZQFXVWRPHUVZLWKUDZPDWHULDOVLQWHUPHGLDWHVDQG¿Qished products directly from our warehouse," said Jan Thoele, executive
110

SternMaid America has modernized its warehouse facility in Aurora, Illinois,
U.S. Photo courtesy of SternMaid.
vice-president of SternMaid America. "We have therefore enlarged our
storage capacity and installed a modern scanning system that enables
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SternMaid America is a member of the Stern-Wywiol Gruppe.
May 2016 / World Grain / www.World-Grain.com
http://www.World-Grain.com
World Grain - May 2016

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