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AGCO CORPORATION ANNOUNCES CHARGE FOR NONRECURRING ACQUISITION RELATED EXPENSES IN FIRST QUARTER

 ATLANTA, April 12 /PRNewswire/ -- AGCO Corporation (NASDAQ: AGCO) today announced that it will record a charge for nonrecurring expenses related to the integration of the North American distribution business of Massey Ferguson which was acquired on Jan. 7.
 The charge, in the amount of $14 million, is in line with the company's original estimate of such costs and will be recorded in the company's first quarter ended March 31.
 The nonrecurring charge includes estimates of $7.5 million for the costs associated with operating duplicate parts distribution facilities which are expected to be eliminated by the end of the third quarter of 1993, $3.5 million for costs associated with Massey Ferguson's regional administrative and sales offices which are expected to be eliminated by the end of the second quarter of 1993, $2.0 million for data processing services provided by Massey Ferguson and related costs which are expected to be eliminated by the end of the third quarter of 1993 and $1.0 million for other nonrecurring costs expected to be eliminated by the end of the second quarter of 1993.
 Savings from the integration of Massey Ferguson's operations are expected to result from the elimination of the seven regional administrative and sales offices operated by Massey Ferguson and the consolidation of the AGCO and Massey Ferguson parts distribution operations. Prior to the acquisition, AGCO's parts distribution operations consisted of a central parts distribution facility in Batavia, Ill., and eight regional parts warehouses, and Massey Ferguson's operations consisted of a central parts distribution facility in Racine, Wis., and eight regional parts warehouses. The company plans to eliminate eight of the total parts distribution locations, including the Massey Ferguson central distribution facility in Racine. The Massey Ferguson acquisition did not include any manufacturing facilities in the United States or Canada. All of the Massey Ferguson branded products will be sourced from Massey Ferguson plants in Europe and other designated suppliers.
 Robert Ratliff, president and chief executive officer, indicated that "the closing of the regional administrative and sales offices is substantially complete and the rationalization of the parts operation is on schedule. The company's plan to complete the transition by the end of the third quarter should be achieved." Allen Ritchie, senior vice president, chief financial officer, stated that "we remain confident of our original estimate that the nonrecurring costs of the transition will be approximately $14 million and have therefore decided to take the charge in the first quarter because the costs are readily quantifiable and it will enable the company to establish a clean basis for comparisons going forward."
 AGCO is a major distributor and manufacturer of agricultural equipment and related replacement parts in the United States and Canada, offering a full product line, which includes tractors, combines, hay tools, forage equipment and implements.
 -0- 4/12/93
 /CONTACT: Allen W. Ritchie, senior vice president, CFO of AGCO Corporation, 404-246-6110/
 (AGCO)


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

BR-BN -- AT010 -- 4950 04/12/93 17:47 EDT
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Date:Apr 12, 1993
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