TORONTO – Deveron Corp. (TSX-V: FARM), a leading agriculture data company in North America, announced that the Company has entered into a definitive agreement dated May 2, 2022 with certain vendor shareholders to acquire a 67% equity interest in A&L Canada Laboratories East, Inc., with an option to purchase the remaining 33% following the three-year anniversary of closing. Total consideration payable to the vendor shareholders includes $42.8 million in cash and $7.5 million in the Company’s common shares. The $7.5 million in the Company’s common shares will be distributed to a company controlled by Greg Patterson, one of the vendor shareholders who, upon closing of the Acquisition, is expected to continue as President, CEO and director of A&L and be appointed to Deveron’s Board of Directors (subject to regulatory approval).
A&L is the one of the largest soil and tissue laboratories in Canada. Founded by Greg Patterson, and based in London, Ontario, A&L operates a 54,500 square foot laboratory with significant growth capacity and 106 employees, including a large R&D group that has produced patented, crop specific yield and disease solutions. A&L processes over 435,000 soil samples per year. Deveron and A&L have cooperated in Canadian soil testing and analysis since 2019 and jointly own and operate Wood’s End Laboratory in the United States.
“This acquisition is transformational for Deveron. Combining Deveron and A&L establishes one of the only fully vertically integrated agriculture data companies in the market. This also aligns with our vision to be North America’s leader in lab and agronomist services,” stated David MacMillan, Deveron’s President, and CEO. “I’m thrilled to welcome A&L to the Deveron family. Greg Patterson, A&L’s Founder, President and CEO, will continue to lead A&L and will join Deveron’s Board of Directors to accelerate and guide the successful merger. Over the last few years, we have built Deveron from the ground up, creating digital, data-driven solutions to help our clients lower costs and improve crop yields. A&L’s complementary services and its successful track record provides the consolidated entity with a strong customer base into which to expand our product offering. The new consolidated company’s financial position will enable investments in organic growth, Research & Development, and capital to invest in new market opportunities.”
“A&L was founded under the principle that farmers want the best information so that they can make the best decisions on their farms,” stated A&L’s Founder, President and CEO, Greg Patterson. “Over the last 35 years, we have built an advice and analytical recommendation company that focuses on good agricultural practices, backed by unbiased data, that promotes sustainable and ecological farming. Combining our long-track record of success in Canada and our three-year partnership with Deveron into a more formal business combination will only continue to bring more value to our customers, while also opening the door to distributing our product offerings through Deveron’s growing US customer base. Soil testing was an avant-garde idea when A&L first opened its doors. We built world class recommendations for our customers through deep research and field data, which we believe will continue to accelerate as A&L and Deveron leverage their respective expertise to deliver the best information in the industry.”
Deveron is an agriculture technology company that uses data and insights to help farmers and large agriculture enterprises increase yields, reduce costs and improve farm outcomes. The company employs a digital process that leverages data collected on farms across North America to drive unbiased interpretation of production decisions, ultimately recommending how to optimize input use. Their focus is the US and Canada where 1 billion acres of farmland are actively farmed annually (based on data collected through the United States Department of Agriculture, the National Agricultural Statistics Service and Statistics Canada).