DULUTH,
Ga., Nov. 1, 2024 /PRNewswire/ -- AGCO
Corporation (NYSE: AGCO), a global leader in the design,
manufacture and distribution of agricultural machinery and
precision ag technology, has completed the previously announced
divestiture of the majority of its Grain & Protein business to
American Industrial Partners ("AIP") effective November 1, 2024, in an all-cash transaction
valued at approximately $700
million.
"Divesting of Grain & Protein is a significant milestone in
AGCO's strategic transformation, accelerated by the PTx Trimble
joint venture, which was completed in April
2024," said Eric Hansotia,
AGCO's Chairman, President and Chief Executive Officer. "AGCO's
portfolio is now focused on award-winning agricultural machinery
and precision ag technology products, which underpins a long-term
focus on high growth, high margin and significant free cash flow
generating businesses."
Proceeds from the sale, net of working capital and other
customary closing adjustments, will be used consistent with AGCO's
stated capital allocation priorities, including primarily debt
repayment, as well as investment in technology and organic growth
initiatives and return of capital to shareholders.
Morgan Stanley & Co. LLC and Rabo Securities USA, Inc. acted as financial advisors to AGCO.
Simpson Thacher & Bartlett LLP acted as legal advisor to
AGCO.
About AGCO
AGCO (NYSE: AGCO) is a global leader in the design, manufacture and
distribution of agricultural machinery and precision ag technology.
AGCO delivers value to farmers and OEM customers through its
differentiated brand portfolio, including leading brands Fendt®,
Massey Ferguson®, PTx and Valtra®. AGCO's full line of equipment,
smart farming solutions and services helps farmers sustainably feed
our world. Founded in 1990 and headquartered in Duluth, Georgia, USA, AGCO had net sales of
approximately $14.4 billion in 2023. For more
information, visit www.agcocorp.com.
Cautionary Statements Regarding Forward-Looking
Information
Forward-looking statements in this release,
including statements about the transaction and our strategic plans
as well as the financial impact to the Company resulting therefrom,
and our ability to close the transaction and the timing of the
closing, are subject to risks that could cause actual results to
differ materially from those suggested by the statements. These
risks include, but are not limited to, the ability to successfully
complete the divestiture of Grain & Protein on a timely basis,
including receipt of required regulatory approvals and satisfaction
of other conditions, the risk that the loss on sale of the assets
could ultimately be greater than we currently expect, and the
ability of the Company to use the proceeds of the transaction
consistent with its stated capital allocation priorities. Further
information concerning these and other risks is included in AGCO's
filings with the SEC, including its Form 10-K for the year ended
December 31, 2023 and subsequent Form
10-Q filings. AGCO disclaims any obligation to update any
forward-looking statements except as required by law.
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SOURCE AGCO Corporation