Key Takeaways:
- Başak Traktör, a subsidiary of ASKO Holding, has agreed to purchase nearly all shares of Buhler Industries Inc.
- The deal includes acquiring all of the acquiree’s outstanding debt from Rostselmash.
- The transaction is valued at CAD$60.5 million.
- This move marks a significant strategic advancement for the acquiree in the agricultural sector.
- The acquisition aligns with ASKO Holding’s expansion goals in the North American market.
Buhler Industries Inc. Enters a Transformative Phase with Başak Traktör’s Acquisition
Buhler Industries Inc. (TSX: BUI), a significant name in the agricultural machinery sector, has announced a pivotal agreement with ASKO Holding and its subsidiary, Başak Traktör. This agreement involves Başak Traktör acquiring about 97% of the acquiree’s shares, previously held by Combine Factory Rostselmash Ltd.
Transaction Details
Buhler’s landmark deal includes transferring all outstanding shares and debts to Başak Traktör. The cash transaction is pegged at CAD$60.5 million. This comprehensive financial move encompasses the acquiree’s debt to Rostselmash, marking a significant shift in the acquiree’s financial structure.
The Acquiree’s Strategic Advancement
Buhler Industries’ search for a long-term investment partner, initiated in July 2023, culminates with this deal. Grant Adolph, COO of Buhler Industries, emphasized the potential benefits of ASKO Holding’s involvement in enhancing the acquiree’s growth and innovation prospects.
ASKO Holding and Buhler: Expanding Horizons
ASKO Holding views the acquisition as a strategic entry into the North American agricultural equipment market. Sami Konukoglu, Chairman of ASKO Holding, pointed out the significance of the acquiree’s legacy brands, Versatile and Farm King, in the agricultural sector and the potential growth trajectory.
The Future Path for Buhler Industries
This transaction marks a new chapter for Buhler, promising innovative growth and enhanced market presence in the agricultural equipment sector. Under ASKO Holding’s portfolio, the acquiree is set to experience advancements in its product range and services, benefiting a wider agricultural community.
Image provided by Buhler Industries
