Farm equipment maker Buhler Industries has bought the capacity to expand its line of Farm King grain handling equipment.
The Winnipeg company announced Thursday it has bought the assets of bankrupt U.S. equipment maker Feterl Manufacturing for an undisclosed sum.
Feterl, which operated out of Salem, S.D., about 70 km west of Sioux Falls, made conventional grain augers, swing drive augers, low-profile and drive-over grain hoppers and rotary screen grain cleaners, as well as bodies for service trucks (including truck-mounted cranes).
The company also made “Pug” brand cargo all-terrain vehicles and Dig-It compact backhoes under license.
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The assets sold include land, equipment, tooling, inventory, patents, trademarks and buildings, especially Feterl’s 145,000-square foot manufacturing plant, unoccupied since the company filed for bankruptcy last year.
Buhler noted its purchase of Feterl is “supported” by a low-interest loan from the South Dakota Economic Development Corp.
“Getting operations up and running again at the Salem facility will be a boost to the region and the state,” South Dakota Governor Mike Rounds said in a separate release Thursday.
Rounds’ release noted that the Feterl plant’s new owners expect to create 47 new jobs in the next three years.
Buhler on Wednesday reported lower earnings for its first quarter ending Dec. 31, with profit of $1.4 million on $42.8 million in revenues, down from $4.4 million on $57.1 million in revenues in the year-earlier period.
Buhler said its reduced Q1 sales “can be attributed to the late harvest, which has postponed sales” and to a lower level of overseas shipments. However, Buhler noted its Q1 sales were still above the average levels for the quarter.
Sales for 2010 are expected to reach “above average” levels but fall short of the 2009 record, Buhler said. Sales of short-line equipment are still “strong” but are expected to be offset by lower levels of tractor sales in the company’s markets overseas.
Buhler late last year unveiled a new brand strategy in which all its various short-line ag equipment offerings will be marketed under its Farm King brand, while its tractors will all be marketed under its Versatile brand.
