In a short statement issued yesterday, AGCO Corporation says it has reached “agreement in principle” to acquire the forage division of Lely Group. Lely’s forage lineup includes a broad range of equipment, including mowers, tedders, rakers, balers and more.
AGCO says the transaction is expected to close in the fourth quarter of 2017, subject to regulatory approvals. The company also says it has started the process of employee consultation.
“The integration of Lely’s industry-leading competence in hay and forage technology will further strengthen AGCO’s full line product offering,” says Martin Richenhagen, AGCO’s chairman, president and chief executive officer.
Lely CEO Alexander van der Lely says moving forward, Lely intends to focus entirely on innovations in “robotisation and sensor/data systems” for dairy farmers.