SIOUX FALLS, S.D., May 1, 2014 (GLOBE NEWSWIRE) -- Raven Industries, Inc. (Nasdaq:RAVN) today announced that its Applied Technology Division (ATD) has acquired SBG Innovatie BV and its affiliate, Navtronics BVBA. Headquartered in Middenmeer, Netherlands, SBG manufactures advanced GPS steering systems for a variety of agricultural applications. The acquisition broadens Raven's guided steering system product line by adding high-accuracy implement steering applications. Additionally, SBG's headquarters will become the new home office for Raven in Europe, expanding the company's global presence and reach into key European markets. The purchase is not expected to have a material impact on Raven's fiscal 2015 results.
"SBG specializes in very precise, real-time kinematic, or RTK, GPS steering systems with a focus on high-value crops. Their highly accurate implement steering technology broadens Raven's existing product line and integrates well into the Raven product portfolio," said Matt Burkhart, ATD's Division Vice President and General Manager. "We are proud to welcome the SBG organization into the Raven family. Our innovative cultures align very well, and SBG's leading technology and strong team members will be a great compliment to further Raven's position as a leader in the precision ag market."
Said Daniel A. Rykhus, Raven's President and Chief Executive Officer, "Our priorities within ATD are to drive growth through international market expansion, new products and broadening OEM relationships. We believe SBG can help further these strategies and position us for success in new markets."
Founded in 2003, SBG currently has operations in the Netherlands just outside of Amsterdam and at Navtronics in Geel, Belgium. The company currently sells its line of GPS steering systems into 11 countries through several dealerships and OEM partners. SBG's 2013 sales were approximately $6 million. Raven paid $5 million at closing, with the potential for up to $2.5 million in additional earn out payments over the next 10 years.
Said Rik van Bruggen, Managing Director of SBG, "We're excited to join Raven so that, together, we can expand Raven's footprint in key geographies and augment their expertise and product line. In turn, Raven's scale and resources will allow SBG to realize our dream of growing the business and helping customers increase yields and efficiencies. Raven is a good partner for us because they are committed to increasing their presence in Europe and providing additional opportunities for our team."
Effective immediately, SBG's products will be offered as part of Raven's lineup of precision ag products. Sales team members from both companies will be offering the combined product lines. For more information, please visit www.ravenprecision.com or visit the two companies together at the Cereals Event in Cambridgeshire, United Kingdom, June 11-12, 2014.
About SBG
SBG Precision Farming was founded in 2003 under the name SBG Innovatie BV. Since then, the company has become one of the largest providers of precision agricultural products in the Netherlands with a growing dealer network throughout Europe. They specialize in high accuracy precision steering systems for agricultural applications. Navtronics BVBA is a research and development affiliate of SBG located in Geel, Belgium.
About Raven Industries, Inc.
Since 1956, Raven Industries has designed and manufactured high-quality, high-value technical products. Raven is publicly traded on NASDAQ (RAVN) and has earned an international reputation for innovation, product quality, high performance and unmatched service. With strengths in engineering, manufacturing, and technological innovation, Raven serves the precision agriculture, high performance specialty films, aerospace, and situational awareness markets. Visit www.RavenInd.com for more information.
Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the expectations, beliefs, intentions or strategies regarding the future. Without limiting the foregoing, the words "anticipates," "believes," "expects," "intends," "may," "plans," and similar expressions are intended to identify forward-looking statements. The company intends that all forward-looking statements be subject to the safe harbor provisions of the Private Securities Litigation Reform Act. Although management believes that the expectations reflected in forward-looking statements are based on reasonable assumptions, there is no assurance these assumptions are correct or that these expectations will be achieved. Assumptions involve important risks and uncertainties that could significantly affect results in the future. These risks and uncertainties include, but are not limited to, those relating to weather conditions and commodity prices, which could affect sales and profitability in some of the company's primary markets, such as agriculture, construction and oil and gas drilling; or changes in competition, raw material availability, technology or relationships with the company's largest customers, risks and uncertainties relating to development of new technologies to satisfy customer requirements, possible development of competitive technologies, ability to scale production of new products without negatively impacting quality and cost, and ability to finance investment and working capital needs for new development projects, as well as other risks described in the company's 10-K under Item 1A. This list is not exhaustive, and the company does not have an obligation to revise any forward-looking statements to reflect events or circumstances after the date these statements are made.