WINNIPEG, July 26, 2018 /CNW/ - Ag Growth International Inc.
("AGI") (TSX: AFN) is pleased to announce it has acquired the Sabe Group Companies (collectively, "Sabe"), a provider of
processing solutions to the food, pet food, animal feed, fertilizer and biomass industries. Based in Chauché, France, Sabe sales and adjusted EBITDA in its most recently completed fiscal year were approximately €16.4
million and €2.5 million, respectively.
Sabe serves a global client base and has a turnkey approach that typically involves engineering, project management,
manufacturing of equipment, and installation. Sabe joins Mitchell Mill Systems and Danmare as recent additions to AGI's
growing Food platform. AGI is proud to welcome Arnaud Meynial and the entire Sabe team to the AGI family.
Company Profile
AGI is a leading provider of equipment solutions for agriculture bulk commodities including seed, fertilizer, grain, and feed
systems with a growing platform in providing equipment and solutions for food processing facilities. AGI has manufacturing
facilities in Canada, the United States, the United Kingdom, Brazil, South Africa and
Italy and distributes its product globally.
Further information can be found in the disclosure documents filed by AGI with the securities regulatory authorities,
available at www.sedar.com and on AGI's website www.aggrowth.com.
NON-IFRS MEASURES
Financial information relating to Sabe is prepared in accordance with French generally accepted accounting principles ("French
GAAP"), which differ in some material respects from IFRS, and accordingly may not be comparable to the financial statements of
AGI or other Canadian public companies.
References to "adjusted EBITDA" are to the unaudited earnings before income taxes, finance costs, depreciation and
amortization of Sabe and include normalization adjustments primarily for certain one-time events, revenue recognition, and
financial lease charges. A non-IFRS financial measure is a measure of a company's historical financial performance, financial
position or cash flow that excludes (includes) amounts, and is subject to adjustments that have the effect of excluding
(including) amounts, that are included (excluded) in the most directly comparable measures calculated and presented in accordance
with IFRS. Non-IFRS financial measures are not standardized; therefore, it may not be possible to compare these financial
measures with other companies' non-IFRS financial measures having the same or similar businesses. We use these non-IFRS financial
measures in addition to, and in conjunction with, results presented in accordance with IFRS. These non-IFRS financial measures
reflect an additional way of viewing aspects of a company's operations that may provide a more complete understanding of factors
and trends affecting the company's business. Management cautions investors that normalized EBITDA should not replace profit or
loss as indicators of performance, or cash flows from operating, investing, and financing activities as a measure of the
Company's liquidity and cash flows.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements that reflect our expectations regarding the future growth, results of
operations, performance, business prospects, and opportunities of the Company. Forward-looking statements may contain such words
as "anticipate", "believe", "continue", "could", "expect", "intend", "plan", "will" or similar expressions suggesting future
conditions or events. In particular, the forward-looking statements in this press release include statements relating to our
business and strategy, including our expectations with respect to the expected benefits of the Sabe acquisition. Such
forward-looking statements reflect our current beliefs and are based on information currently available to us, including certain
key expectations and assumptions concerning anticipated grain production in our market areas, financial performance, business
prospects, strategies, product pricing, regulatory developments, tax laws, the sufficiency of budgeted capital expenditures in
carrying out planned activities, currency exchange rates and the cost of materials, labour, services, AGI's ability to
achieve the expected benefits of the acquisition of Sabe, and the anticipated impact of the acquisition of Sabe on AGI's
business. 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 international, national and
local business conditions, weather patterns, crop planting, crop yields, crop conditions, the timing of harvest and conditions
during harvest, seasonality, industry cyclicality, volatility of production costs, agricultural commodity prices, the cost and
availability of capital, currency exchange rates, competition, the failure to complete the Sabe acquisition on the terms or on
the timing announced or at all and the failure to realize some or all of the anticipated benefits of the acquisition of Sabe.
These risks and uncertainties are described under "Risks and Uncertainties" in our most recently filed MD&A and Annual
Information Form. These factors should be considered carefully, and readers should not place undue reliance on the Company's
forward-looking statements. There can be no assurance that any of the anticipated benefits of the Sabe acquisition will be
realized. We cannot assure readers that actual results will be consistent with these forward-looking statements and we undertake
no obligation to update such statements except as expressly required by law.
SOURCE Ag Growth International Inc. (AGI)
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