AGCO Extends its Grain Storage and Seed Handling Business with Acquisition of Cimbria
June 29 2016 - 8:37AM
Business Wire
AGCO, Your Agriculture Company (NYSE:AGCO), a worldwide
manufacturer and distributor of agricultural equipment, announced
today that it has agreed to acquire Cimbria Holdings Ltd. for
approximately $340 million from Silverfleet Capital. Cimbria, based
in Thisted, Denmark, is a leading manufacturer of products and
solutions for the processing, handling and storage of seed and
grain. The transaction is subject to regulatory approval and is
expected to close in the third quarter of 2016.
Cimbria’s extensive products and services support the cleaning,
drying, storage and conveyance of grain and seed through the
development, manufacture and installation of individual machines,
customized systems and complete turnkey plants, as well as project
management and process control consulting. Cimbria sales, which are
expected to reach approximately $240 million in fiscal 2016, are
concentrated in Western Europe with growing exposure to Eastern
Europe, Africa and the Middle East.
“The acquisition of Cimbria significantly enhances our market
position in the European grain handling and storage industry,” said
Martin Richenhagen, AGCO’s Chairman, President and Chief Executive
Officer. “Cimbria’s products are complementary to our GSI’s
offerings and are recognized by its customers for their design,
quality and innovation. This combination also provides significant
marketing and cost saving synergies and will provide us with a
global leadership position in the seed handling industry as well as
further strengthen our capabilities to serve large global
customers. With margins similar to GSI, the acquisition of Cimbria
provides us an attractive opportunity to grow our business and
expand our margins.”
Rabobank is acting as financial advisor and Herbert Smith
Freehills is serving as legal advisor to AGCO.
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Safe Harbor Statement
Statements which are not historical facts, including projected
2016 sales and expectations regarding future growth and cost
synergy achievement, are forward-looking and 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, possible declines in demand for products as a result of
weather, demand and other conditions that impact farm income,
actions by producers of competitive products, and the general risks
attendant to acquisitions. Further information concerning these and
other factors is included in AGCO’s filings with the Securities and
Exchange Commission, including its Form 10-K for the year ended
December 31, 2015. AGCO disclaims any obligation to update any
forward-looking statements except as required by law.
* * * * *
About AGCO
AGCO (NYSE: AGCO) is a global leader in the design,
manufacture and distribution of agricultural solutions and supports
more productive farming through its full line of equipment and
related services. AGCO products are sold through five core brands,
Challenger®, Fendt®, GSI®, Massey Ferguson® and Valtra®, supported
by Fuse® precision technologies and farm optimization services, and
are distributed globally through a combination of approximately
3,000 independent dealers and distributors in more than 140
countries. Founded in 1990, AGCO is headquartered
in Duluth, GA, USA. In 2015, AGCO had net sales of $7.5
billion. For more information, visit
http://www.AGCOcorp.com. For company news, information and
events, please follow us on Twitter: @AGCOCorp. For financial news
on Twitter, please follow the hashtag #AGCOIR.
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Please visit our website at www.agcocorp.com
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version on businesswire.com: http://www.businesswire.com/news/home/20160629005713/en/
AGCOGreg Peterson, 770-232-8229Director of Investor
Relationsgreg.peterson@agcocorp.com
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