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/FIRST AND FINAL ADD -- NY006 -- AGCO NAMED MASSEY FERGUSON DISTRIBUTOR/

 Attachment A
 AGCO Background
 AGCO is a major manufacturer and distributor of farm equipment and replacement parts in the United States and Canada. The company's products include tractors ranging in size from 40 to 200 horsepower, combines, implements, hay tools and forage equipment. In addition, the company distributes a full line of related replacement parts. The company's tractors are sold under the AGCO-Allis, Deutz-Allis and White brands, its combines under the GLEANER tradename, its implements under the Deutz-Allis tradename and its hay tools and forage equipment under the Hesston and Deutz-Allis tradenames. The primary markets for the company's products are the hay, corn and wheat belts of the central and western United States and Canada.
 AGCO is the successor to the agricultural business of Allis- Chalmers, a company which began manufacturing and distributing agricultural equipment in the early 1900s. Management and certain other current shareholders acquired the company in June 1990 from Klockner- Humbolt Deutz, AG (KHD). Since the Deutz-Allis acquisition, the company has grown substantially through the Hesston and White Tractor acquisitions which enabled the company to quickly acquire established product lines and dealer networks, as well as certain manufacturing facilities and equipment. The company's products are currently distributed through a network of approximately 1,800 independent Deutz-Allis, Hesston and White dealers that serve local and regional markets across North America.
 AGCO manufactures and assembles higher horsepower tractors and combines at its facility in Independence, Mo. The company manufactures hay tools and forage equipment at a facility located in Hesston, Kan., which is owned by Hay & Forage Industries (HFI), a joint venture in which AGCO and J.I. Case Company each hold a 50 percent interest. In addition, a variety of the company's products, including its mid-range tractors, are manufactured by third parties to the company's specifications and are sold under various tradenames.
 AGCO had net sales of $274.5 million in 1991. On a pro forma basis, reflecting the full year impact of the Hesston and White Tractor acquisitions, net sales were $325.5 million. In 1991 AGCO, on a pro forma basis, had market shares of approximately 2.8 percent for tractors in the 40-100 horsepower category, 5.0 percent for tractors in the over 100 horsepower category, 4.4 percent for combines and 13.0 percent for hay and forage equipment. For the nine months ended Sept. 30, 1992, AGCO had net sales of $229.2 million. Market shares were 2.6 percent for tractors in the 40-100 horsepower category, 4.6 percent for tractors in the over 100 horsepower category, 7.1 percent for combines and 14.0 percent for hay and forage equipment.
 Attachment B
 Massey Ferguson North American Operation Background
 The North American Distribution Operation (NADO) of Massey Ferguson is the distribution arm of Massey Ferguson responsible for the marketing and sale of a full line of agricultural equipment through approximately 1,100 independent dealers in the United States and Canada. The company distributes tractors ranging in size from 40 to 170 horsepower that are manufactured in Massey Ferguson facilities in Coventry, U.K., and Beauvais, France. The company also has contracts with various OEM suppliers for combines, compact tractors (under 40 horsepower), hay and forage equipment and implements sold under the Massey Ferguson brand name. AGCO will enter into a distributor agreement with Massey Ferguson to become the exclusive distributor of Massey Ferguson branded products in North America.
 For its fiscal year ended Jan. 31, 1992, NADO had net sales of $200.3 million. The company's market share for tractors in the 40-100 horsepower category in North America was approximately 10.0 percent for the fiscal year ended Jan. 31, 1992. Its market share was 8.2 percent in the under 40 horsepower tractor category, 1.8 percent in over 100 horsepower tractor category and 1.9 percent in combines. Net sales for the six months ended July 31, 1992, were $106.9 million. Market shares were 11.3 percent for tractors in the 40-100 horsepower category, 7.6 percent in the under 40 horsepower category, 2.1 percent in the over 100 horsepower category and 1.9 percent in combines.
 Attachment C
 Agricredit Background
 Agricredit is a diversified equipment finance company. The company provides financing to end users of equipment sold by Massey Ferguson dealers and other manufacturers. The company serves 31 manufacturers, including Massey Ferguson, and over 5,000 dealers by providing financing to their various equipment end users in the United States. In addition, the company also provides approximately 500 dealers with inventory financing. Although the majority of the equipment financed is related to the agricultural market, the company also finances industrial, forestry and lawn-related products.
 At Jan. 31, 1992, the company had total net receivables outstanding of $356.2 million. Finance income for the year ended Jan. 31, 1992, totaled $49.7 million and net income was $9.0 million.
 AGCO and Varity will form a joint venture to own and operate Agricredit in which both parties will have a 50 percent interest. The joint venture will continue to provide financing for end users of agricultural, industrial and commercial equipment including that sold by the Massey Ferguson, Deutz-Allis, Hesston and White dealer organizations.
 -0- 11~30~92 AA NY006
 ~END FIRST AND FINAL ADD~
 ~PRNewswire -- Nov. 30~
 (AGCO VAT)


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

GK-PS -- NY006A -- 4013 11~30~92 08:29 EST
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Publication:PR Newswire
Date:Nov 30, 1992
Words:900
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