Baird Capital Partners (BCP), the US-based buyout fund of Baird Private Equity, has acquired Digi-Star Holdings, Inc, an international manufacturer of agriculture scales and weighing equipment.
Senior financing for the transaction is being provided by The PrivateBank and US Bank National Association with Fifth Street Finance Corp providing the mezzanine. The terms of the deal have not been disclosed.
Digi-Star is headquartered in Fort Atkinson, Wisconsin, with an additional facility in Panningen, The Netherlands. The company’s customised weighing systems and software are incorporated into mobile farm equipment to provide precise control over input costs, monitor resource utilisation, enhance yield management and optimise farm profitability.
Of traditional industries, agriculture was among the strongest performers during the recent downturn despite commodity pricing pressures. US net farm income is forecasted to reach an all-time high of USD94.7 billion in 2011, and farmers have continued to increase their investment in capital equipment and machinery.
“We have actively followed the agricultural products and process controls industries for the past few years and believe Digi-Star is a strong platform business that is well positioned to become the leading global precision measurement company serving the agricultural sector,” says Andrew Brickman (pictured), BCP Partner.
Brickman will join Digi-Star’s Board of Directors, along with Malcolm “Mac” Moore, the former CEO of Gehl Corporation and Dave Schroeder, the former CEO of Intermatic, Inc. Both Moore and Schroeder are members of BCP’s operating network and bring strong agricultural and process controls backgrounds.
“The use of precision equipment to improve and optimize agricultural production is gaining increasing importance as producers look to increase yields and improve performance,” says Moore.
“The Company has built a strong management team and we are excited to partner with Digi-Star in driving the Company’s next stage of global growth,” says Schroeder.
“This transaction represents an exciting next step for Digi-Star customers and employees,” says Digi-Star President & CEO Grant Ihrke. “We look forward to working closely with Baird Capital Partners to build on our commitment to providing the highest class, precision measurement products to agricultural producers across the world.”
