Valmont (VMI) To Purchase Remaining 49% Stake In AgSense
Zacks Investment Research | Jan 02, 2020 09:49PM ET
Valmont Industries, Inc. (NYSE:VMI) recently inked a deal to acquire the remaining 49% interest in AgSense for a purchase price of roughly $42 million. The acquisition will be financed with cash on hand and is anticipated to be concluded later this month.
The company’s consolidated financial statements include the operating results for AgSense since the purchase of a 51% stake in August 2014.
The deal is not expected to impact operating income or net revenues. However, it will be accretive to earnings per share (EPS) in fiscal 2020 primarily due to change in earnings attributable to noncontrolling interests.
Per Valmont’s management, complete ownership of AgSense complements its strategic priority to strengthen leadership position in global technology. Further, AgSense’s profitable and recurring revenue service model has created a technology sales growth engine that will benefit Valmont’s shareholders and customers.
Acquiring 100% stake in AgSense marks another important milestone as Valmont continues to carry out its technology strategy.
Valmont’s shares have gained around 36.6% in the past year compared with the Zacks Investment Research
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