Joint venture with Laverda S.p.A to reinforce AGCO’s market position and open new opportunities

In a further major step forward in the expansion of its harvest machinery business, AGCO today announced that, subject to the approval of competition authorities, it has acquired a 50% stake in Laverda S.p.A from the Italian ARGO Group

Two years ago, Martin Richenhagen, Chairman, President and CEO of AGCO Corporation pledged that the company would deploy all the resources necessary to become a world leader in harvesting technology. This latest move is yet further proof that AGCO is delivering on its commitment with unstinting multi-million dollar investment and unparalleled focus on the harvesting machinery sector.

New harvesting product introductions for AGCO’s Massey Ferguson, Fendt and Challenger brands have included the recent launch of a new range of big square balers and a new ‘super-large’ rotary combine. Development of an innovative new hybrid combine – to be built at the company’s combine assembly plant in Randers, Denmark - is at an advanced stage. Significant investment and restructuring at the Randers facility has resulted in a 40% increase in output since 2005 and the plant is poised to meet rising demand.

ARGO owns a number of manufacturing, service and distribution companies as well as some prestigious trademarks, all operating exclusively in the traditional agricultural machinery sector. Laverda S.p.A, which is based in Breganze, Northern Italy, has produced combine harvesters for over 50 years and agricultural machinery and equipment since 1873. Today it operates one of the most modern and efficient harvesting machinery production sites in Europe.

AGCO already has a strong partnership with the Breganze plant which has been manufacturing mid-range combines for AGCO’s Massey Ferguson, Fendt and Challenger brands for distribution in Europe, Africa and the Middle East since 2004.
 “Our success in selling Massey Ferguson, Fendt and Challenger combines manufactured in Breganze over the past few years has given us the confidence to establish a broader agreement”, explains Gary Collar, AGCO Senior Vice-President and General Manager Europe, Africa and Middle East (EAME). 

The joint venture also includes Laverda’s ownership in Fella-Werke GMBH, a German manufacturer of grass and hay machinery and a 50 % stake in Gallignani S.p.A, an Italian manufacturer of balers.

“In particular, the integration of Fella and Gallignani provides AGCO with direct access to key remaining products to enhance its harvesting offer,” continues Gary Collar. “Overall, the integration of harvesting development activities for Europe will significantly improve AGCO’s base of resources committed to the harvesting business. It’s a major strategic move for us and reinforces our commitment to provide customers with the very best choice of equipment and technology to support their growing needs.”

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About AGCO
Founded in 1990, AGCO Corporation (NYSE: AG) (www.agcocorp.com) is a global manufacturer of agricultural equipment and related replacement parts. AGCO offers a full product line including tractors, combines, hay tools, sprayers, forage, tillage equipment and implements, which are distributed through more than 3,200 independent dealers and distributors in more than 140 countries worldwide. AGCO products include the following well-known brands: AGCO®, Challenger®, Fendt®, Gleaner®, Hesston®, Massey Ferguson®, New Idea®, RoGator®, Spra-Coupe®, Sunflower®, Terra-Gator®, Valtra®, and White™ Planters.  AGCO provides retail financing through AGCO Finance. The company is headquartered in Duluth, Georgia, and in 2006 had net sales of $5.4 billion.

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Paul Lay
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