RSM buys Feterl Manufacturing in U.S. for $2.3 mln
MOSCOW. March 5 (Interfax) - Rostselmash (RSM) has acquired the assets of U.S. company Feterl Manufacturing Corp, a producer of grain loaders based in Salem, North Dakota, for $2.3 million, CJSC Novoye Sodruzhestvo told Interfax.
A source told Interfax that the cost of asset acquisition was substantially below the market price owing to Feterl's bankruptcy.
RSM intends to start up production at the U.S. company by May. The production will be sold in the U.S. and Canada. The holding's sales revenue for 2010 (for the year ending September 30, 2010) is forecast at $3 million-$5 million, in 2011 - $15 million with net profit at $2.5 million.
In September of last year, it was reported that RSM acquired a portion of the assets in U.S. company Red Ball for the production of Buhler brand sprayers. RSM acquired 80% of the shares in Buhler at the end of 2007 for $140 million.
Rostselmash is one of the world's leading producers of agricultural equipment. RSM is part of the industrial union Novoye Sodruzhestvo. According to unofficial reports, Konstantin and his partners, Yury Ryazanov and Dmitry Udras, control RSM.