MILFORD - Agricultural supplier CTB International Corp. signed a $180 million merger agreement with Berkshire Hathaway Inc.

CTB shareholders will receive $12.75 per share in cash under the deal, the farm equipment maker said in a statement issued today.

The transaction includes about $40 million of assumed debt, according to CTB.

The merger agreement is subject to approval of a majority of CTB's shareholders and to regulatory approvals. The transaction is expected to close in the fourth quarter of this year.

CTB will become a wholly owned subsidiary of Berkshire Hathaway once the transaction is completed.

Victor A. Mancinelli, CTB's president and chief executive officer, hailed the agreement as a significant step forward for the company. "The deal enables us to find an outstanding permanent home for this business," he said. "It's good for our customers, our loyal employees and managers, and the local communities in which we operate, as well as providing an assured return on our shareholders' investments.

"As a small-capitalization, public company with limited research coverage, we were not widely followed by public market investors. Berkshire Hathaway, one of only eight AAA rated companies, will provide us improved access to capital to support our longer term growth strategy."

Warren Buffett, chief executive officer of Berkshire Hathaway, said, "This is a strong company with great American values. It has an excellent franchise, strong market share in a basic industry and top-flight management."

Omaha-based Berkshire Hathaway reported net income of $1.05 billion for the quarter that ended June 30. Berkshire has a reported market value of more than $80 billion.

CTB's net earnings in 2001 were more than $14 million, said Michael Fisch, president of American Securities Capital Partners, which owns 42 percent of the company's outstanding shares.

American Securities and some other shareholders, including Second District Republican congressional candidate Chris Chocola, have agreed to vote the 55 percent of shares under their control in favor of the merger.

Chocola, company chairman, said, "We originally partnered with American Securities in hopes of building the company my grandfather founded and preserving its legacy as it transitioned from a family business. American Securities has been a great partner to the company and to our family. With their support, CTB has completed 10 acquisitions and an initial public offering. We are confident that CTB will continue to flourish with Berkshire Hathaway's guidance and are very pleased with this outcome."

Michael Fisch, president of ASCP, said CTB has achieved more than 68 percent growth in sales since 1995, growing to more than $230 million in 2001. Its net earnings have risen nearly 120 percent during that same time from approximately $6.5 million in 1995 to more than $14 million last year, while substantially all of the debt incurred to acquire CTB has been repaid.

Fisch is a member of the CTB board, as are two other managing directors of ASCP, Charles Klein and David Horing.

CTB manufactures equipment for the poultry, hog, egg production and grain industries. It has more than 1,300 employees worldwide. [[In-content Ad]]