Georgia-based AGCO, the builder of Challenger, Fendt, and Massey Ferguson brands of capital equipment for agriculture, has a deal to pay $940 million for GSI Holdings Corp., which builds storage and livestock feeding equipment. The seller is a private equity firm, Centerbridge Partners L.P.
The purchase continues a steady expansion program for AGCO, which is building new tractor assembly plant in Minnesota, forming a joint venture to manufacture air-seeding machinery, and purchased a global distributor of agricultural aftermarket accessories and tractor replacement parts.
AGCO said its global market presence and its manufacturing and purchasing capabilities will provide new opportunities to GSI to grow, and create operating efficiencies. Also, it said GSI would enhance its own North American sales and profits.
“GSI is an excellent fit with AGCO and will allow us to extend our reach in the agricultural industry and provide our customers with an even wider range of products and services,” according to chairman Martin Richenhagen. “With its high-quality products and services, recognized brands and global capabilities, GSI gives us strong positions in the grain storage and protein production segments and is well-positioned to benefit from increases in global grain and food demand.”
GSI is headquartered in Assumption, Ill., but distributes its products globally through 500 independent dealers. AGCO stated the sale would close before year’s end, pending regulatory approval.
“Today marks the beginning of a very exciting chapter for GSI,” stated GSI president and CEO Scott Clawson. “Through this combination, we will create a stronger business for our customers and employees that will allow us to maximize our growth opportunities, both domestically and abroad.”