Grain Handling Company Acquired by AGCO for $340 Million
AGCO has acquired Danish grain handling equipment company, Cimbria Holdings from Silverfleet Capital for $340 million reports AgWeb.
Founded in 1947 as a family business, but owned by private equity since 2007, Cimbria produces grain equipment including belt conveyors, piping, chutes, valves, dryers, fans, seed processing equipment, silos, and screen cleaners. The company also installs customized machinery and systems as well as builds completed plants.
In June of last year, the company landed its largest order in its history, when contracted to deliver 23 grain silo plants to Egypt.
The contract includes the supply of the project design, engineering, structures, equipment, cleaners, laboratory equipment, silos, electronic control systems, and spare parts for three years of operation, and delivery to Egypt. Once in country, the contract also calls for the oversight of the installations at all 23 sites, which stretch from the Mediterranean Sea to Aswan.
“We are delighted with the substantial growth achieved in conjunction with the management team at Cimbria,” said Gareth Whiley, Partner at Silverfleet Capital in a recent press release. “It supports our investment thesis of capitalizing [sic] on long-term growth trends in the food and agricultural manufacturing sectors and investing in winning companies.”