Ottawa, ON November 2, 2018 -- Calian Group Ltd. (TSX: CGY) is pleased to announce that effective November 1, 2018, it has acquired IntraGrain Technologies Inc. (“IntraGrain”), a growing Canadian AgTech firm delivering advanced technology solutions to the agriculture market.
Based in Regina, Saskatchewan, IntraGrain is the maker of the innovation-award winning BIN-SENSE® grain storage solution. The technology combines Internet of Things (IoT) connectivity with bin sensors to protect grain quality and eliminate the risk of stored grain spoilage.
IntraGrain will report into Calian’s Saskatoon-based Systems Engineering Division (SED), a manufacturing partner to IntraGrain for five years. Kyle Folk, IntraGrain CEO and 2017 EY Entrepreneur of the Year in Manufacturing for Prairie Region, will join Calian to support its innovation agenda with an initial focus on AgTech strategy development and implementation.
“I am very excited about this acquisition and the opportunity to work with IntraGrain’s amazing team. IntraGrain is an excellent fit for us in support of our growth and product development strategies,” stated Pat Thera, President, Calian SED. “We look forward to leveraging our very complementary skills and manufacturing capabilities as SED expands into the high-growth AgTech market. IntraGrain’s products have tremendous potential in global markets.”
Demand for AgTech, also known as smart agriculture, is increasing as global population growth creates upward pressure on food production and farmland yields. The global market for AgTech is projected to expand at a compound annual growth rate of approximately 13% through 2025, according to Zion Market Research.
"A key element in sustainable food supply is the safe storage of grain. Our technologies give producers the necessary tools to ensure that their stored grain and other assets are secure," said Kyle Folk, CEO of IntraGrain. "With BIN-SENSE®, Fuel Lock™ and our other AgTech strategies, I am very excited to be joining a larger, innovative market player that will help take our products and solutions to the next level."
IntraGrain also recently launched its Fuel Lock™ solution that provides the digital locking of on-site fuel pumps with a keypad PIN. The solution can track employee PIN and fuel usage via a mobile app and is applicable to a number of sectors beyond agriculture – including construction and energy.
"With an excellent margin profile and annual revenues of approximately $8 million, we expect this acquisition to be EBITDA accretive from day one," stated Jacqueline Gauthier, Chief Financial Officer, Calian. “IntraGrain’s results will be consolidated and reported as part of SED.”
Added Kevin Ford, President and CEO, Calian: “This is a very exciting acquisition that, within our Four Pillar Growth Strategy, aligns with the service line evolution and customer diversification pillars. IntraGrain’s leading solutions and staff will strengthen our innovation agenda at Calian and provide additional exposure to AgTech and ancillary markets – with excellent potential in domestic, U.S. and global markets."