Jan. 7, 2020
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, Huron, SD, 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."