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 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."
About Valmont Industries, Inc.
Valmont is a global leader, designing and manufacturing engineered products that support global infrastructure development and agricultural productivity. Its products for infrastructure serve highway, transportation, wireless communication, electric transmission, and industrial construction and energy markets. Its irrigation equipment and services for large-scale agriculture improves farm productivity while conserving fresh water resources. In addition, Valmont provides coatings services that protect against corrosion and improve the service lives of steel and other metal products. For more information, visit valmont.com
Concerning Forward-Looking Statements
This release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on assumptions that management has made in light of experience in the industries in which Valmont operates, as well as management’s perceptions of historical trends, current conditions, expected future developments and other factors believed to be appropriate under the circumstances. As you read and consider this release, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (some of which are beyond Valmont’s control) and assumptions. Although management believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect Valmont’s actual financial results and cause them to differ materially from those anticipated in the forward-looking statements. These factors include among other things, risk factors described from time to time in Valmont’s reports to the Securities and Exchange Commission, as well as future economic and market circumstances, industry conditions, company performance and financial results, operating efficiencies, availability and price of raw material, availability and market acceptance of new products, product pricing, domestic and international competitive environments, and actions and policy changes of domestic and foreign governments. The Company cautions that any forward-looking statement included in this press release is made as of the date of this press release and the Company does not undertake to update any forward-looking statement.
View source version on businesswire.com: https://www.businesswire.com/news/home/20200102005518/en/
Renee Campbell, Investor Relations