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AGCO CORPORATION AND MASSEY FERGUSON ANNOUNCE JOINT DISTRIBUTION EFFORTS IN NORTH AMERICA

 ATLANTA, Nov. 30 ~PRNewswire~ -- AGCO Corporation (NASDAQ: AGCO) and Massey Ferguson today announced the signing of agreements which will appoint AGCO as the exclusive distributor of farm equipment in North America for Massey Ferguson, a unit of Varity Corporation (NYSE: VAT).
 At the same time, AGCO and Varity announced that they had also formed a joint venture to acquire substantially all the net assets of Agricredit Acceptance Corporation, a diversified North American equipment finance company now owned by Varity. Through the joint venture, AGCO and Varity will each hold a 50 percent interest in Agricredit.
 Upon appointment as Massey Ferguson's North American distributor, AGCO will acquire substantially all of the net assets, primarily dealer accounts receivable and inventories, of Massey Ferguson's North American operations. Together with the Agricredit interest, the total investment by AGCO is estimated at $110 million and will be financed through an expansion of AGCO's current revolving credit facility with ITT Commercial Finance. The transactions, which are subject to government approvals, are expected to be completed by Dec. 31.
 R.J. Ratliff, president and chief executive officer of AGCO, commented on the significance of the transactions.
 "As a result of these actions, AGCO and Massey Ferguson have created a strong alliance to enhance the presence of Massey Ferguson products in North America, and ensure the distribution, sales support and financial assistance required by dealers and customers in this very competitive marketplace," he said. "Moreover, this is a key step forward in addressing the AGCO strategy of distributing farm equipment under various brand names in as effective a manner as possible."
 Victor Rice, chairman and chief executive officer of Varity, also underscored the importance of the alliance between AGCO and Massey Ferguson. "These moves strengthen Massey Ferguson's presence in North America while allowing it to reduce its asset levels," he said. The proceeds received by Varity will be about $110 million and will be used to reduce debt. Mr. Rice also noted that the transaction represented a significant step in Varity's previously announced asset divestment program.
 Mr. Ratliff stated he will propose that an officer of Massey Ferguson be named to the board of directors of AGCO Corporation.
 -0- 11~30~92
 ~CONTACT: Allen W. Ritchie, vice president and chief financial officer, 404-246-6110, or Susan H. Hogan, vice president - corporate communications, 404-246-6161, both of AGCO; or Jerry Hostetter, vice president - investor relations and communications of Varity, 716-888-8073~
 ~FIRST AND FINAL ADD -- BACKGROUNDS -- TO FOLLOW~
 (AGCO VAT)


CO: AGCO Corporation; Varity Corporation ST: Georgia IN: SU: MAC

GK-PS -- NY006 -- 3991 11~30~92 07:44 EST
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Publication:PR Newswire
Date:Nov 30, 1992
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