09:53 AM EDT, 09/23/2022 (MT Newswires) -- Ag Growth International Inc. (TSX: AFN) on Friday said Tim Close has stepped down as President and Chief Executive Officer and resigned as a director to pursue other opportunities.
The company, which was down more than 2% at last look in a weak Canada market, said the board of directors has named Paul Householder, the company's current Chief Operating Officer, as President and CEO.
Close will remain in an advisory role through year-end to ensure a smooth transition. Close joined Ag Growth in August 2012 as Vice President, Strategic Planning and Development. He was appointed President in March of 2015 and became President and CEO in January 2016.
Householder joined Ag Growth in 2019 EVP, International. In 2020, he was promoted to EVP, Global Operations. In 2021, he was promoted to Chief Operating Officer.
Separately, National Bank of Canada said in a note it expects "a seamless transition" given Householder's familiarity with Ag Growth's global operations and Close agreeing to remain in an advisory role through the end of 2022.
The bank said Householder is "a known commodity" to Ag Growth, with board chair Bill Lambert highlighting full confidence in his ability to lead the company.
The bank also said the announcement reinforces its conviction in the company's focus on integration, organic growth and leverage reduction. It continues to anticipate revenue and EBITDA margin expansion and the application of free cash flow to balance sheet.
The bank kept its forecasts for Ag Growth unchanged. It estimates 2022 EBITDA at about $220 million, a tad above the consensus of about $218 mln and Ag Growth's unchanged adjusted EBITDA guidance of at least $215 million.
National Bank maintained its Outperform rating on Ag Growth and the price target of $52.00.