Hiawatha, Kan. - Hemisphere GPS 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 for $14.96 million. 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.
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.
decision to divest our non-agriculture operations reflects our focus on the
core platforms necessary to extend our leadership in precision agriculture,”
says 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.”
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
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
having an established relationship with UniStrong as one of our resellers made
our alliance a win-win for both parties,” says Heiniger. “I am very pleased to
be working together in this close technology-sharing relationship.”
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. Hemisphere GPS’ new Outback MAX product integrated with
AgJunction has had a positive reception in the marketplace.
The re-branding of the Hemisphere GPS as “AgJunction” is an
integral part of the strategic re-focusing of the company’s resources on the
significant opportunities in precision agriculture. 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.
part of the previously announced restructuring plan, Hemisphere has completed
the transition of its Calgary-based manufacturing activities to its external
manufacturing partner, and is closing its Calgary-based manufacturing
activities. The transition of the company's head office to Hiawatha,
Kan., continues, and the Calgary location will be officially closed on May 31.
Other progress on restructuring activities has been positive and costs
associated with the restructuring are expected to come in below previously
Hemisphere GPS Sells Non-Agricultural Operations, Plans Name Change
February 1, 2013