July 17, 2018

Canadian precision seeding and planting company Clean Seed Capital Group announced it has signed an agreement to acquire U.S.-based farming equipment manufacturer Harvest International for $13 million.

Founded in 2007 by the Friesen family, Harvest International began with a focus on the manufacturing of high quality augers and conveyor systems. After seven years, in 2014, the company expanded its product line through the development and production of farmer-focused planter technologies, securing patents for key components of the planter row units, setting them above and apart from rival equipment.

In 2017 the company went on to sell its auger and conveyor business for the sole advancement of its planter business, transforming its 75,000-square-foot production facility and head office in Storm Lake, Iowa, toward this purpose.

Likewise, Clean Seed is a leader in planting technology, having developed precision technology that uses air to propel seeds through plastic tubing along with fertilizer – allowing for higher efficiency and speed compared to traditional box drill seeder systems. Although an advancement, the air-powered system had its challenges regarding consistency. In answer, Clean Seed developed the Smart Seeder, a wireless, computer-controlled planting system that has the ability to deliver up to six different inputs at independent rates.

“Following the recent granting of Clean Seed’s patents in the U.S., we embarked upon a program to source a synergistic industry partner that could accelerate our growth and position our company to play a major role in the U.S. and international planter markets, complementing our SMART Seeder technology initiatives,” said Graeme Lempriere, president and CEO of Harvest International. “One company stood out as a seamless fit for Clean Seed, U.S. based Harvest International. This transaction is a transformational event for our collective organizations and drives our speed to market.”

The joining of these two innovative companies not only compounds the impact of these technologies, but expands the geographic reach of each as well.

“We look forward to accessing an extensive U.S. market and community as well as executing on future plans to bring proven planter technology north into Canada,” said Lempriere. “The combination our of strong intellectual properties and innovative technologies opens the door to provide significant marketplace advantage for Clean Seed.”

Although the deal is subject to a list of regulatory hurdles, Clean Seed expects the deal to close by the end of this year.

-Lynda Kiernan