25 Dec 2023 10:36

Asko Holding to buy Rostselmash's Canadian plant for $45 mln

ROSTOV. Dec 25 (Interfax) - Turkish farm machinery maker Basak Traktor, a division of Asko Holding, has agreed to acquire 97% of shares in Canadian agricultural machinery group Buhler Industries Inc. from Russia's Rostselmash (RSM) for CAD60.5 million ($45.5 million), the group reported on its website.

Basak Traktor will acquire all Buhler Industries shares owned by RSM. RSM has not yet responded to Interfax questions about the details of the deal.

Newspaper GorodN, citing company data, reported that about $27.9 million of the transaction price will be for the shares, at $1.15 per share, transaction costs will total $4.1 million and the remainder is the price of Buhler Industries' debt plus interest.

Buhler Industries' press release also mentioned "certain other payments related to intellectual property transfers."

RSM is controlled by the president of Russian heavy machinery and equipment association Rosspetsmash, Konstantin Babkin and his partners Yury Ryazanov and Dmitry Udras. The group, which includes an eponymous combine plant and 12 other businesses, has a product line of 24 types of machinery in more than 150 models and modifications, including grain and feed harvesting combines, tractors, sprayers, forage machinery and grain processing equipment.

RSM acquired 80% of Buhler Industries, which builds heavy farm tractors, in 2007 for $140 million. The Canadian company is constantly expanding its dealer and distribution network in North America.

Asko Holding and its subsidiaries operate in the areas of construction and farm machinery manufacturing, energy and technology, the Turkish group's website said.