Entringer S.A., a Brazilian manufacturer of bucket elevators and grain bins, recently was acquired by Ag Growth International (AGI) Inc. as the Canadian company seeks to expand and gain access to the Brazilian agricultural sector.
"We are very pleased to announce the acquisition of Entringer," AGI President and CEO Tim Close said. "Despite the economic and political turmoil in Brazil, the agriculture sector has remained a positive point for the country. The issues facing 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 had sales of $43 million in 2015. Over the past six years, it had an average of $5.6 million in sales.
"The Brazilian agriculture market continues to gain momentum as the soy and corn crops benefit from double cropping and as new acres are converted to grain, new seed technology is deployed and producers make better use of fertilizer to impact crop yields,” Close said. “Brazil has a substantial deficit in the infrastructure and equipment 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."