AGCO announced it is purchasing GSI, a leading global manufacturer of grain storage and protein production systems.
Based in Assumption, Ill., GSI sells its products globally through more than 500 independent dealers. The transaction is expected to close before the end of 2011, subject to regulatory approval.
“GSI is an excellent fit with AGCO and will allow us to extend our reach in the agricultural industry and provide our customers with an even wider range of products and services,” stated Martin Richenhagen, AGCO’s Chairman, President and Chief Executive Officer. “With its high quality products and services, recognized brands and global capabilities, GSI gives us strong positions in the grain storage and protein production segments and is well-positioned to benefit from increases in global grain and food demand.”
“Today marks the beginning of a very exciting chapter for GSI,” said Scott Clawson, President and Chief Executive Officer of GSI. “Through this combination, we will create a stronger business for our customers and employees that will allow us to maximize our growth opportunities, both domestically and abroad. GSI’s long and proud history will continue as part of the AGCO family.”
The transaction is expected to be immediately accretive to AGCO's earnings and cash flow.