AGCO has completed the divestiture of the majority of its Grain & Protein business to American Industrial Partners (AIP) effective today in an all-cash transaction valued at approximately $700 million.
“AGCO’s portfolio is now focused on award-winning agricultural machinery and precision ag technology products, which underpins a long-term focus on high growth, high margin and significant free cash flow generating businesses,” said Eric Hansotia, AGCO chairman, president and CEO.
Proceeds from the sale, net of working capital and other customary closing adjustments, will be used consistent with AGCO’s stated capital allocation priorities, including primarily debt repayment, as well as investment in technology and growth initiatives and return of capital to shareholders.
Morgan Stanley & Co. LLC and Rabo Securities USA, Inc. acted as financial advisors to AGCO. Simpson Thacher & Bartlett LLP acted as legal advisor to AGCO.
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