AG Growth Income Fund
TSX : AFN.UN

AG Growth Income Fund

November 20, 2007 16:01 ET

Ag Growth Announces Completion of Strategic Acquisition

WINNIPEG, MANITOBA--(Marketwire - Nov. 20, 2007) - Ag Growth Income Fund (TSX:AFN.UN) ("Ag Growth" or the "Fund") announced today the successful completion of its previously announced acquisition of 100% of the outstanding shares of Union Iron, Inc. ("Union Iron") and the shares and assets of certain related companies of the Decatur, Illinois based company, for USD $20.2 million. The purchase price may increase by up to $3.1 million based on the achievement of EBITDA targets of USD $4.5 million for 2008, USD $5.0 million for 2009 and USD $5.0 million for 2010 or a cumulative target of USD $14.5 million for those same three years. TD Commercial Banking and CIBC Commercial Banking provided debt financing to fund the acquisition. Terms and conditions of the financing are consistent with the Fund's existing credit agreement.

Union Iron manufactures several lines of material handling and storage equipment for the commercial and large-farm market. Its catalog includes bucket elevators, drag conveyors, screw conveyors, truck probes, towers and trusses, distributors, facility load out equipment and corn degerminators. Union Iron, since 2004, has been developing a line of temporary grain storage systems and accessories which has experienced substantial growth over the past four years. Union Iron provides Ag Growth with key products lines to complement the Hi Roller brand acquired by Ag Growth in 2006.

Company Profile

Ag Growth is a leading manufacturer of portable and stationary grain handling, storage and conditioning equipment, including augers, belt conveyors, grain storage bins, grain handling accessories and grain aeration equipment. Ag Growth's sales, marketing, and distribution system includes approximately 1,400 dealers and distributors in 48 states and nine provinces.

Forward-Looking Statements

This news release may contain forward-looking statements that reflect our expectations regarding the future growth, results of operations, performance and business prospects, and opportunities of the Fund. Forward-looking statements contain such words as "anticipate", "believe", "continue", "could", "expects", "intend", "plans", "will" or similar expressions suggesting future conditions or events. Such forward-looking statements reflect our current beliefs and are based on information currently available to us. Forward-looking statements involve significant risks and uncertainties. A number of factors could cause actual results to differ materially from results discussed in the forward-looking statements, including changes in national and local business conditions, changes in the agricultural industry including changes in crop yields, industry cyclicality and seasonality, changes in the exchange rate between the Canadian and U.S. dollar, competition, changes in governmental agricultural policies, incorrect assessment of the value of acquisitions including the proposed Union Iron acquisition and failure to complete or realize the anticipated benefits of acquisitions including the proposed Union Iron acquisition. These risks and uncertainties are fully described in our 2007 Annual Report and our Annual Information Form. Further information about these and other risks and uncertainties can be found in these and other disclosure documents filed by Ag Growth Income Fund with the securities regulatory authorities, available at www.sedar.com.

Contact Information

  • Ag Growth Income Fund
    Steve Sommerfeld
    Investor Relations
    (204) 489-1855
    Email: steve@aggrowth.com