Long suffering combine maker Rostselmash Ltd has divested its ownership and debt in Buhler Industries by selling its shares to a Turkish based division of ASKO Holdings
Buhler Industries Inc had already cashed up earlier in the year with the sale of two properties located in Fargo ND and Vegreville Alta and also completed the sale and leaseback of a third property in Woodstock Ont. It is understood Buhler Industries banked US$24.3 million from these property sales.
But it turns out that income was not enough on the back of 2022 financials showing Buhler’s revenue had slipped to just US$178.8 million, down US$57.6 million from sales of US$236.4 million in 2021.
And it was still a dog chasing its tail when third quarter 2023 revenue was revealed at $60.1, down $5.2 from the comparable quarter in the prior year. And while revenue for the first nine months of 2023 was $183.7 million, up $5.4 compared to the nine months ending 30 September 2022, the net loss for the third quarter was $1.4, compared to a net loss of $2.5 for the same period in 2022.
The takeover deal from ASKO Holding division Başak Traktör is a definitive agreement to purchase all of the common shares of the company owned by Combine Factory Rostselmash Ltd. The shares acquired by Başak Traktör represent around 97% of all outstanding shares.
In addition, under the agreement, Başak Traktör will acquire all of the outstanding debt of Buhler Industries owed to Rostselmash. The aggregate cash purchase price to be paid by ASKO is US$45.3 million.
This agreement comes after all possible industry participants were given the opportunity to take over the Buhler Industries operation in July 2023, but the process to identify a long-term partner with money to invest culminated at the end-of-year deadline with the ASKO Holding division Başak Traktör bid.
Başak Traktör is run out of Sakarya Turkey and has a long history of manufacturing agricultural equipment and machinery since 1914 under several brand names. In 1996, the company was renamed Başak. And under the brand name Başak Traktör, the company manufactures farm tractor models up to 90kW (120hp).
In addition, under the Başak Agri brand, the company also supplies tillage and planting implements, along with harvesting and garden equipment. In addition, Başak distributes other agricultural branded equipment for several world markets.
Başak Agri will now have one of the most extensive farm equipment product lines at its disposal with the Farm King brand incorporating top quality farm implements including grain augers, hay mowers, Hay rakes, bale carriers and wrappers, along with a wide range of compact farm implements.
It is expected new owner ASKO Holding will continue the Buhler Industries line of Versatile tractors and Farm King brands. The sale transaction is to be finalised as quickly as early January 2024.
Distribution inquiries should be directed to Başak Traktör export manager Ömer DURMAZ on tel: +90 (264) 295 8300, or email: export@basaktraktor.com.tr or see more on this link.
