DULUTH, GEORGIA - AGCO, Your Agriculture Company (NYSE:AGCO), a worldwide manufacturer and distributor of agricultural equipment, announced that it has agreed to acquire the remaining 50% stake in Laverda S.p.A from the Italian ARGO Group for €65 million. Under the new agreement with ARGO, AGCO will take 100% ownership of Laverda, which also includes Fella-Werke GmbH, a Germany-based manufacturer of grass and hay machinery once competition authority approval is obtained. The transaction is expected to close before the end of 2010.
This acquisition builds upon the successful joint venture operation established with ARGO in 2007, in which AGCO acquired a 50% share in Laverda S.p.A. Laverda is based in Breganze, Italy and has been producing combines under AGCO's Challenger, Fendt and Massey Ferguson brands since 2004. It also manufactures combines under the Laverda brand. The Breganze facility, one of the most modern and efficient farm machinery production complexes in Europe, serves as AGCO's sole European combine production facility.
"This new step underlines AGCO's long-term strategy to accelerate the development of its harvesting business," stated Martin Richenhagen, AGCO's Chairman, President and Chief Executive Officer. "The acquisition of the remainder of Laverda further strengthens AGCO's base of resources in Europe. We are very glad to be able to continue our commitment to harvesting by having full control of the Laverda brand and the Breganze facility. AGCO remains committed to the Laverda brand and Laverda customers and is looking forward to developing the brand to its full potential."
SOURCE: AGCO News Release