DULUTH, GEORGIA - AGCO, Your Agriculture Company (NYSE:AGCO), a worldwide manufacturer and distributor of agricultural equipment, today announced that it has signed a letter of intent to form a joint venture with Amity Technology, LLC for the development and distribution of air seeding and tillage equipment. As part of the transaction, AGCO will acquire a 50% interest in selected air seeding and tillage product lines currently sold under the Amity, Wil-Rich and Wishek brand names. The resulting joint venture will be based in Fargo, North Dakota and will develop, manufacture and distribute products sold under its existing brand names as well as selected AGCO brand names in the future. The transaction is expected to close before the end of 2010.
"This latest agreement underlines AGCO's strategy to expand and improve its product offering to the professional farming sector worldwide," stated Martin Richenhagen, AGCO's Chairman, President and Chief Executive Officer. "Amity, Wil-Rich and Wishek have a strong track record for developing innovative products that improve the productivity of the farmer. We believe the combination of Amity's product innovation with AGCO's worldwide distribution resources will create a successful alliance. The Amity air seeder is ideal for wheat production particularly in North America and Eastern Europe and will help complement AGCO's other product offerings within those regions."