May 16, 2006

CTB acquires majority stake in Israeli company

Chore-Time Brock Inc (CTB), a designer of systems for the poultry, hog, egg production and grain industries, has acquired a 60 percent stake in Yan Agro Logic Ltd, an Israeli designer, manufacturer and marketer of argricultural systems.

The acquisition is expected to give CTB opportunities to expand its offerings in developing regions.

Don Steinhilber, CTB vice president and chief financial officer, said although there is some overlap between the two companies' products, Agro Logic is operating at a different level and has a different positioning, he said.

Agro Logic also operates at a lower price point and sophistication, he added.

That lower price point has allowed Agro Logic to sell its products in developing markets. Under the new structure, CTB would be able to utilise its distribution channel with Agro Logic's products to gain more markets around the world, Steinhilber said.

Although CTB has products that go to developing regions, the addition of Agro Logic and its lower price point would improve the company's product range, Steinhilber said.

In turn, Agro Logic would also be able to market CTB products through its existing channel.

CTB has a workforce of more than 1,200 people and became an independent operating unit of Berkshire Hathaway in 2002.