Hemisphere GPS Sells Non-Agricultural Operations, Plans Name Change

Hemisphere GPS Inc. has signed and closed a definitive agreement to sell the business assets associated with its non-agricultural operations to the Canadian subsidiary of Beijing UniStrong Science & Technology Co. Ltd. (“UniStrong”) for cash of $14.96M. PI Financial Inc. acted as advisor on the transaction for Hemisphere GPS. The Company also announced that it plans to change its corporate name to “AgJunction Inc.” subject to shareholder approval at its 2012 annual shareholders meeting, planned for May 2013.

Hemisphere GPS’ non-agricultural operations include the Company’s Precision Products portfolio and related infrastructure. The Precision Products segment generated revenues of approximately $13.3 million in 2012 serving marine, land survey, construction, mapping, and OEM segments.

“The decision to divest our non-agriculture operations reflects our focus on the core platforms necessary to extend our leadership in precision agriculture,” said Rick Heiniger, President and CEO of Hemisphere GPS. “The result is a streamlined business which can more effectively capitalize on the expanding market opportunities in agriculture.”

Included in the sale are the intellectual property rights associated with the non-agricultural operations necessary to support the continued growth of those operations globally, including trademarks associated with the “Hemisphere GPS” identity. UniStrong intends to name the acquired operations “Hemisphere GNSS Inc.”. The Hemisphere GPS brand was not part of the Company’s agriculture identity.

As part of the transaction, UniStrong and Hemisphere GPS have formed a strategic alliance and a collaborative business relationship covering supply chain management, customer support, non-competition, and perpetual technology cross-licensing.

“Already having an established relationship with UniStrong as one of our resellers made our alliance a win-win for both parties,” stated Mr. Heiniger. “I am very pleased to be working together in this close technology-sharing relationship.”

The Company’s existing agricultural business has not been interrupted during this process and the Company reports that ag-related revenues have increased year-to-date. The Company’s new Outback MAX product integrated with AgJunction has had a positive reception in the marketplace.

Corporate Name Change To “AgJunction”

The re-branding of the Company as “AgJunction” is an integral part of the strategic re-focusing of the Company’s resources on the significant opportunities in precision agriculture, and part of the restructuring initiated in September, 2012. The Company maintains ownership of its key patents and leading agricultural brands including AgJunction, Outback Guidance, and Satloc, which are among the most recognized names in precision agriculture.

AgJunction will retain its listing on the Toronto Stock Exchange. Coinciding with the name change, the Company plans to change its ticker symbol from “HEM” to “AJX” shortly after the shareholders meeting, subject to shareholder and TSX approval. An announcement will precede the commencement of trading under the new symbol and will formally introduce the Company’s new corporate identity.

As part of the previously announced restructuring plan, the Company has completed the transition of its Calgary-based manufacturing activities to its external manufacturing partner, and is closing its Calgary-based manufacturing activities effective today. The transition of the Company’s head office to Hiawatha, KS, continues, and the Calgary location will be officially closed on May 31, 2013. Other progress on restructuring activities has been positive and costs associated with the restructuring are expected to come in below previously announced estimates. The Company does not require additional capital to complete the restructuring.

Upon completion, savings from the overall restructuring are estimated to be approximately $7 million per annum through reduced manufacturing costs, improved gross margins and reduced operating overhead.

A further corporate update will be provided in February, 2013.

Leave a Reply

Precision Ag Stories

Illinois Researchers
FertilizerMeasure Of Age In Soil Nitrogen Could Help Precision Agriculture
July 26, 2016
What’s good for crops is not always good for the environment. Nitrogen, a key nutrient for plants, can cause problems Read More
PrecisionAg Vision Conference
Precision AgSix Reasons Senior Executives Must Attend The First-Ever PrecisionAg Vision Conference
July 11, 2016
As I made a West Coast swing this spring to visit companies including The Climate Corp. and Planet Labs, there Read More
EquipmentSouth Dakota State: ‘All In’ On Precision Ag Education
July 6, 2016
Last summer, when we were in the midst of planning for our August PrecisionAg Innovation Series conference, we got an Read More
Craig Houin Sunrise Cooperative iPad
Precision AgState Of Precision Ag 2016: Gut Check Time For Value
May 31, 2016
There’s no denying that precision technologies and practices are more vibrant than ever. Equipment manufacturers have fine-tuned the hardware for Read More
Trending Articles
Southeast Farmers Coop - Finished Building
Retail FacilitiesNew Stueve Facilities Offer Ag Retailers Speed, Accuracy
July 9, 2016
Leading the industry in planning and constructing dry fertilizer storage and chemical warehouse solutions, Stueve Construction helped three ag retailers Read More
Heritage Cooperative
Retail FacilitiesKahler Automation Designs State-Of-The-Art Facility For Heritage Cooperative
July 4, 2016
Heritage Cooperative in Marysville, OH, needed an efficient liquid, dry and grain facility to serve the many needs of their Read More
The Andersons Waterloo
ManagementFirst Indiana Facility Certified Under 4R Nutrient Stewardship Certification Program
June 27, 2016
The 4R Nutrient Stewardship Certification Program has announced that The Andersons, Inc.’s Waterloo, IN, facility has been added to its Read More
Food IT
Industry NewsCalifornia Event Will Mix Ag And Tech Professionals To Explore IT Solutions
June 20, 2016
Silicon Valley is hot on agriculture, and an upcoming event in California will bring together the food and tech industries Read More
Monsanto Luling Plant
Eric SfiligojWhat’s Next For Monsanto?
May 31, 2016
For the folks at Monsanto’s headquarters in St. Louis, MO, it has been an eventful few weeks. Back on May Read More
Soybean Plant closeup
Industry NewsMonsanto Rejects Bayer Bid; Open To More Talks
May 25, 2016
Monsanto Co, the world’s largest seed company, turned down Bayer AG’s $62 billion acquisition bid as “incomplete and financially inadequate” Read More
Latest News
FertilizerGypsum Added To List Of Conservation Practices
July 28, 2016
Crop farmers in a growing number of states may be eligible for financial assistance from the USDA’s Natural Resources Conservation Read More
Management2016 CTIC Cover Crop Survey: 33% Report ROI From Cover …
July 28, 2016
Insight from 2,020 farmers from across the country reflected enthusiasm for cover crops and—for the fourth year in a row—found Read More
Palmer pigweed seedhead in cotton
HerbicidesStudy: Fall Weed Controls Can Make Significant Impact O…
July 28, 2016
An article published in the latest issue of the journal Weed Science shows that adopting harvest-time and post-harvest weed controls Read More
InsecticidesSyngenta: Beware Of Early Stinkbug Threat To Soybeans
July 28, 2016
With the record warm temperatures this past winter and confirmations from early entomologist reports, Syngenta encourages growers to monitor stinkbug Read More
Peanut field
Crop InputsVerdesian Introduces New Inoculant For Peanuts
July 28, 2016
As planning begins for the next growing season, Verdesian Life Sciences adds Primo Power CL, a new liquid inoculant, to Read More
Soil Young Corn
Crop InputsSmithsonian: 5 Things to Know About New GMO Labeling Bi…
July 27, 2016
On July 14, the House of Representatives passed a bill requiring large food companies to label products containing genetically modified Read More
Palmer pigweed in soybean stubble
HerbicidesSpecial Issue Of Weed Science Explores Human Aspects Of…
July 27, 2016
Weeds that evolve resistance to herbicides are a serious threat to global agricultural production. In this Special Issue of Weed Science, Read More
CHS Primeland
CropLife 100CHS Businesses In Washington, Idaho Combining For Great…
July 27, 2016
As full-service ag retailers, CHS Primeland and CHS Farmers Co-op collectively serve farmers and other customers in 15 counties in Read More
Storage Tanks at Nachurs
Crop InputsNACHURS Joins Field to Market
July 27, 2016
NACHURS announced today that it has joined Field to Market: The Alliance for Sustainable Agriculture, a leading multi-stakeholder initiative working Read More
Illinois Researchers
FertilizerMeasure Of Age In Soil Nitrogen Could Help Precision Ag…
July 26, 2016
What’s good for crops is not always good for the environment. Nitrogen, a key nutrient for plants, can cause problems Read More
Kochia
Crop InputsNufarm Launches New Herbicide for Resistant Kochia
July 25, 2016
Nufarm introduces Scorch herbicide for U.S. farmers and ranchers combating a broad range of troublesome broadleaf weeds. A unique premix Read More
ManagementNew Rabobank Report Calls for Farmer ROI Focus
July 25, 2016
As U.S. row crop farmers brace themselves for a third year of negative margins, Rabobank believes farmers must lower the Read More
Syngenta Sign
Crop InputsBloomberg: Syngenta-Chem China Deal on Track for Regula…
July 25, 2016
Syngenta AG, which has agreed to be taken over by China National Chemical Corp. for $43 billion, said talks with Read More
ManagementGROWMARK Meeting Visit, Company Takeover Updates, and R…
July 22, 2016
Editors Paul Schrimpf and Eric Sfiligoj discuss their recent speaking engagement at GROWMARK’s eastern event, crop protection company merger rumors, Read More
Crop InputsMonsanto: EU Approves Roundup Ready 2 Xtend Imports
July 22, 2016
Monsanto Co. announced today that the European Commission has granted import approval for Roundup Ready 2 Xtend soybeans. This milestone Read More
Syngenta headquarters in Basel, Switzerland
Crop InputsSyngenta Announces Alfalfa Seed Split Off
July 22, 2016
On September 1, 2016, Syngenta will transfer sales and distribution of alfalfa seed to the NEXGROW branded business that is Read More
Dow DuPont
Crop InputsDuPont, Dow Shareholders Approve Merger
July 21, 2016
DuPont and The Dow Chemical Company announced that, at their respective special meetings of stockholders held today, stockholders of both Read More
ManagementLand O’Lakes Announces SUSTAIN Business Unit, Oth…
July 20, 2016
Land O’Lakes, Inc. today announced the formal organization of a new business unit, SUSTAIN, and its leadership. SUSTAIN will focus Read More