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AGCO CORPORATION ANNOUNCES AGREEMENT TO ACQUIRE WHITE-NEW IDEA FARM EQUIPMENT COMPANY

 Acquisition Will Expand AGCO's Product Line and Dealer Network
 ATLANTA, Nov. 8 /PRNewswire/ -- AGCO Corporation (NASDAQ: AGCO) today announced that it has agreed to acquire the White-New Idea Farm Equipment Division from Allied Products Corporation (NYSE: ADP).
 Under the agreement, AGCO will acquire substantially all of the division's net assets, primarily dealer accounts receivable, inventories, a manufacturing facility in Coldwater, Ohio, and its master replacement parts warehouse in Kewanee, Ill.
 The total purchase price is estimated at $50.0 to $60.0 million and will be financed through AGCO's current revolving credit facility. The transaction is expected to be completed by Dec. 31.
 WHITE-NEW IDEA ACQUISITION WILL ADD GROWTH OPPORTUNITIES FOR AGCO
 "This acquisition represents a significant step in AGCO's growth strategy," according to Robert J. Ratliff, AGCO's chairman and chief executive officer. "The White-New Idea acquisition will provide AGCO with an additional line of products with well recognized brand names and significant market shares. The expansion of our dealer distribution system will also provide growth opportunities for AGCO's full line of agricultural equipment brands through additional crossover contracts."
 White-New Idea manufacturers, markets and sells agricultural implements and replacement parts through approximately 900 independent dealers in the United States and Canada. Products include planters, hay tools, material handling and tillage equipment. Hay tools and material handling equipment are typically used by farmers and ranchers involved in live stock and dairy operations. Hay tools produced include round balers, mower conditioners, sickle bar and disc mowers, and rakes. Material handling equipment primarily includes manure spreaders for fertilizer applications. Planters are used for row crops such as corn, cotton and soybeans.
 For its year ended Dec. 31, 1992, White-New Idea had net sales of $60.9 million. The company's market shares in 1992 ranged from approximately 15 percent to 20 percent in the primary product categories in which the company competes. White-New Idea's sales for the nine- months ended Sept. 30 were $63.7 million.
 AGCO, formed in 1990, is the successor to the agricultural business of Allis-Chalmers, a company which began manufacturing and distributing agricultural equipment in the early 1990s. AGCO has grown substantially through acquisition of the Hesston(R) and White Tractor companies in 1991 and the acquisition of the North American Distribution Operation of Massey Ferguson in January 1993. These acquisitions have enabled AGCO to become a leader in the farm equipment industry through well- established brands and a large dealer network. AGCO's products are currently distributed through a network of approximately 3,500 independent AGCO Allis, Massey Ferguson, Hesston(R), White, SAME and GLEANER(R) dealers that serve local and regional markets across North America.
 AGCO's products include tractors ranging in size from 10 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, White and Massey Ferguson brands, its combines under the GLEANER(R) and Massey Ferguson brands, its hay tools and forage equipment under the Hesston(R) trade name.
 AGCO manufactures and assembles higher horsepower AGCO Allis and White 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 sold under the AGCO Allis and White brand names, are manufactured by third parties to the company's specifications and are sold under various trade names. Tractors sold under the Massey Ferguson brand name, ranging in size from 40 to 170 horsepower, are manufactured in Massey Ferguson facilities in Conventry, U.K. and Beauvais, France. The company also distributes combines, compact tractors, hay and forage equipment, and implements under the Massey Ferguson brand name, which are produced by various OEM suppliers.
 In addition, in January 1993, AGCO acquired at 50 percent interest in Agricredit Acceptance Company, a diversified equipment finance company. Agricredit provides financing to end users of equipment sold by over 6,000 dealers representing AGCO and 30 other manufacturers in the United States. At Sept. 30, Agricredit had a receivables portfolio outstanding of approximately $385.0 million.
 AGCO had net sales of $314.5 million in 1992. On a pro forma basis, reflecting the full year impact of the Massey Ferguson and Agricredit acquisitions, net sales were $529.5 million. For the nine months ended Sept. 30, AGCO had net sales of $424.6 million.
 -0- 11/8/93
 /CONTACT: Allen W. Ritchie, senior vice president and CFO, AGCO Corporation, 404-246-6110/
 (AGCO ADP)


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

RA-TG -- AT004 -- 1734 11/08/93 11:35 EST
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Date:Nov 8, 1993
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