Leading ag tech deal creates an
industry-leading, mixed-fleet precision ag platform
serving farmers globally
DULUTH,
Ga. and WESTMINSTER,
Colo., April 1, 2024 /PRNewswire/ -- AGCO
Corporation (NYSE: AGCO) and Trimble (Nasdaq: TRMB) today announced
the closing of their joint venture (JV) transaction. The JV, known
as PTx Trimble, combines Trimble's precision agriculture business
and AGCO's JCA Technologies to form a new company that will better
serve farmers with factory fit and retrofit applications in the
mixed-fleet precision agriculture market.
AGCO has acquired an 85% stake in PTx Trimble, and Trimble will
hold a 15% stake. Going forward, the PTx Trimble JV will be
consolidated into AGCO's financial statements.
"Farmers worldwide need technologies that support them to be
more productive and profitable while minimizing the environmental
impact of their operations," said Eric
Hansotia, AGCO's Chairman, President and Chief Executive
Officer. "PTx Trimble will provide farmers greater access to
next-generation precision ag tools, no matter what brands of
tractors and implements they operate."
The formation of PTx Trimble enhances AGCO's comprehensive
technology offering around guidance, autonomy, precision spraying,
connected farming, data management and sustainability.
"Farmers are the real winners here," said Rob Painter, Trimble's President and Chief
Executive Officer. "By combining our expertise and resources
through this JV, we aim to accelerate the pace of innovation. With
a focus on open technologies, customers will benefit from tech
solutions available to farmers across a broad range of tractor and
implement brands."
AGCO's consolidated precision ag revenue is now expected to
exceed $2.0 billion by 2028, and the
transaction is expected to be accretive to AGCO's revenue growth,
adjusted operating margin profile and adjusted earnings per share
in the first full year post-close.
AGCO financed the transaction through a combination of
$1.1 billion in recently issued
senior unsecured notes, a $500
million term loan facility, other borrowings and cash on
hand.
About AGCO
AGCO (NYSE: AGCO) is a global leader in the
design, manufacture and distribution of agricultural machinery and
precision ag technology. AGCO delivers customer value through its
differentiated brand portfolio including core brands like Fendt®,
GSI®, Massey Ferguson®, Precision Planting® and Valtra®. Powered by
Fuse® smart farming solutions, AGCO's full line of equipment 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.
About Trimble
Dedicated to the world's tomorrow,
Trimble is a technology company delivering solutions that enable
our customers to work in new ways to measure, build, grow and move
goods for a better quality of life. Core technologies in
positioning, modeling, connectivity and data analytics connect the
digital and physical worlds to improve productivity, quality,
safety, transparency and sustainability. From purpose-built
products and enterprise lifecycle solutions to industry cloud
services, Trimble is transforming critical industries such as
construction, geospatial, agriculture and transportation to power
an interconnected world of work. For more information about Trimble
(NASDAQ: TRMB), visit: www.trimble.com.
FTRMB
Cautionary Statements Regarding Forward-Looking
Information
Forward-looking statements in this release,
including statements about the transaction and our strategic plans
as well as growth in revenue and accretion of the transaction to
growth, adjusted margin and adjusted earnings are subject to risks
that could cause actual results to differ materially from those
suggested by the statement. These risks include, but are not
limited to, adverse developments in the agricultural industry,
supply chain disruption, inflation, weather, commodity prices,
changes in product demand, interruptions in supply of parts and
products, difficulties in integrating PTx Trimble in a manner that
produces the expected financial results, reactions by customers and
competitors to the transaction, including the rate at which the
Trimble precision agriculture business's largest OEM customer
reduces purchases of Trimble precision agriculture equipment and
the rate of replacement by the JV of those sales, and adverse
changes in the financial and foreign exchange markets, including
increases in interest rates. Actual results could differ materially
from those suggested in these statements. Further information
concerning these and other risks is included in AGCO's filings with
the SEC, including its Form 10-K for the year ended December 31, 2023. AGCO disclaims any obligation
to update any forward-looking statements except as required by
law.
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SOURCE AGCO Corporation