AGCO Corp. sells Grain & Protein Unit to AIP for US$700M, refocuses on Core Ag Tech

USA – AGCO Corp., a global leader in agricultural machinery and precision technology, has finalized the sale of most of its Grain & Protein business to New York-based private equity firm American Industrial Partners (AIP).

The all-cash deal, valued at US$700 million, marks a significant shift for AGCO, allowing the company to intensify its focus on core agricultural machinery and precision ag technology.

“Divesting of Grain & Protein is a significant milestone in AGCO’s strategic transformation,” said Eric Hansotia, AGCO’s chairman, president, and CEO.

“Our portfolio is now focused on high-growth, high-margin, and free cash flow-generating businesses in agricultural machinery and precision ag technology.”

The move aligns with AGCO’s broader strategic goals, including its recent partnership with Trimble in the PTx joint venture, finalized in April 2024. Proceeds from the sale are expected to support AGCO’s capital allocation priorities, such as debt reduction, investments in technology, and shareholder returns.

With the transaction’s close, the newly independent business has been rebranded as Grain & Protein Technologies.

Jacob Thomas, former CEO of specialty tire and wheel supplier Carlstar, has been appointed as the company’s chief executive officer.

With a diverse portfolio that includes leading brands like GSI, Cumberland, Automated Production, Tecno, and Cimbria, Grain & Protein Technologies serves over 100 countries worldwide.

Its extensive operations include more than 3,200 employees and 14 manufacturing facilities across North America, Brazil, Europe, and Malaysia, generating an estimated US$1 billion in annual revenue.

American Industrial Partners, which manages approximately US$16 billion in assets, is well-known for its investments across various industrial sectors, including aerospace, automotive, chemicals, and industrial technology.

AIP’s acquisition of Grain & Protein Technologies adds a new dimension to its portfolio, providing resources to foster growth and operational excellence in agricultural production solutions worldwide.

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