Investment will enable the Company to
strengthen its high-quality grain / seed processing and storage
solutions and its protein production systems, all critical to
large-scale agriculture
NEW
YORK, July 25, 2024 /PRNewswire/ -- American
Industrial Partners ("AIP"), an industrials investor, announced it
has acquired the Grain & Protein division (the "Company") of
AGCO Corporation (NYSE: AGCO), one of the world's largest
designers, manufacturers and distributors of agricultural machinery
and precision agriculture technology. The acquired Company designs,
manufactures, and globally markets grain storage and seed
processing equipment and solutions as well as feeding, watering,
climate management and control systems for worldwide protein
production, principally poultry, swine, and egg. AGCO Grain
& Protein's solutions are mission critical to agribusinesses
looking to maximize the quality, yields, and value of their
products.
Food production is a dynamic global industry with many
opportunities to eliminate waste, improve efficiency, and lower
environmental footprint through the application of technology,
particularly in process control, production, and storage. These
global dynamics, combined with the Company's trusted brands and
leading market positions, create long-term tailwinds for the
Company, which provides real assets and innovative technologies
critical to global food security. AGCO's Grain & Protein
division generates annual revenue of approximately $1 billion and employs ~3,200 people with 14
manufacturing facilities in North
America, Brazil,
Europe and Malaysia.
"AIP has a multi-decade track record of operational excellence,
driving value across dynamic and complex industries," said
Robert Crain, Senior Vice President
and General Manager of AGCO Grain & Protein. "We are confident
that AGCO is placing the Company in very capable hands and that AIP
can leverage their engineering and manufacturing knowhow to
accelerate growth by providing customers with high-quality services
essential to the world's food storage and security."
"Food production is a critical area of global growth and as a
proven innovator with strong solutions addressing storage, process
control, efficacy, and environmental footprint, the Company is well
positioned for success," said Eric
Baroyan, Partner at AIP. "With operations across
North America, Brazil, Europe and Malaysia, the Company is highly regarded by
its customers as an enabler of efficiency and profitability
gains."
Sidley Austin LLP is acting as legal counsel to AIP. Morgan
Stanley & Co. LLC and Rabo Securities USA, Inc. are acting as financial advisors to
AGCO. Santander US Capital Markets LLC is acting as financial
advisor to AIP and its affiliate is leading the fully committed
debt financing. Simpson Thacher & Bartlett LLP is acting as
legal advisor to AGCO.
About American Industrial Partners
American Industrial Partners ("AIP") is an industrials investor,
with approximately $16 billion in
assets under management. AIP is distinctively focused on industrial
businesses across a broad range of end markets that include:
aerospace and defense, automotive, building products, capital
goods, chemicals, industrial services, industrial technology,
logistics, metals & mining, and transportation, among others.
AIP looks to generate differentiated returns by investing in
quality industrial businesses with strong management teams and
working with those teams to implement comprehensive operating
agendas to build long-term value. Current AIP portfolio companies
generate aggregate annual revenues of approximately $25 billion and employ approximately 65,000
employees as of March 31, 2024. In
October 2023, AIP closed its eighth
fund at $5.1 billion.
www.americanindustrial.com
About AGCO
AGCO (NYSE: AGCO) is a global leader in the design, manufacture
and distribution of agricultural machinery and precision ag
technology. AGCO delivers value to farmers and OEM customers
through its differentiated brand portfolio including core brands
like Fendt®, GSI®, Massey Ferguson®, PTx and Valtra®. AGCO's full
line of equipment, smart farming solutions and services helps
farmers sustainably feed our world. Founded in 1990 and
headquartered in Duluth, Georgia,
USA, AGCO had net sales of approximately $14.4 billion in
2023. For more information, visit www.agcocorp.com. For company
news, information, and events, please follow us on X: @AGCOCorp.
For financial news on X, please follow the hashtag
#AGCOIR.
Contacts:
Media Inquiries: American Industrial Partners –
pro-AIP@prosek.com
Media inquiries: AGCO – Rachel
Potts, V.P., Chief Communications Officer; 678-654-7719;
Rachel.Potts@AGCOcorp.com
Investor inquiries: AGCO – Greg
Peterson, V.P. Investor Relations; 770-232-8229;
Greg.Peterson@AGCOcorp.com
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SOURCE American Industrial Partners