Russian combine manufacturer Rostselmash has officially sealed the deal for a majority stake in farm implement maker Buhler Industries.
The Russian firm, which according to Buhler makes over 17 per cent of the total world production of farm combines, has paid $7.25 per share in cash to take up an 80 per cent position in the Winnipeg manufacturer, Buhler announced Oct. 30.
According to a recent article in the Winnipeg Free Press, the $145 million share purchase was financed in part with a $50 million loan to Combine Factory Rostselmash from Buhler Industries’ founder, well-known philanthropist John Buhler.
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The cash deal took the place of a more complex offer from Rostselmash earlier this summer: $7.50 per share for a 51 per cent stake, followed by 7.25 per cent per year in each of the years 2009-12 at $7.60 per share.
Rostselmash, according to its web site, has operated in Russia since 1931 and made the transition from a state-owned to publicly traded company in 1992.
Buhler runs 10 plants in North America and owns the Versatile, Allied, Farm King and Inland brands. The company recently celebrated the production of the 50,000th four-wheel-drive Versatile tractor, at the Winnipeg manufacturing plant it bought from CNH in 2000.
Buhler shares (BUI:TSX) closed trading at $5.90 on Nov. 1, down from their last peak of $6.85 on Oct. 23.
