Calian Group Ltd. has acquired Canadian AgTech firm IntraGrain Technologies Inc.
“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,” said 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.”
Based in Regina, Sask., IntraGrain is the maker of the 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.
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 per cent 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 Folk. “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.”
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