Acquisition expands product offering in South America
DULUTH, Ga.--(BUSINESS WIRE)--Sept. 18, 2007--AGCO Corporation (NYSE: AG), a worldwide manufacturer and distributor of agricultural equipment announced today that it has purchased the privately owned Industria Agricola Fortaleza Limitada ("SFIL"), a leading Brazilian provider of farm implements. Based in Ibiruba, Brazil, SFIL manufactures and distributes a line of farm implements including drills, planters, corn headers and front loaders. SFIL's 2007 sales are estimated to be approximately US$35 million.
"AGCO's technology driven tractors and combines have built strong market positions in the South American marketplace due in large part to our superior dealer network," commented Martin Richenhagen, Chairman, President and Chief Executive Officer of AGCO. "The SFIL family of products complements our market leading tractor and combine business and provides another step towards expanding our product offering for our South American dealers and their customers."
Founded in 1967, SFIL's expertise regarding local soil conditions and local planter requirements has earned their products a reputation for quality and innovation. "The addition of this line of implements will allow us to leverage the strength of our brands and our robust dealer networks to further grow our business in the South American region," explained Andre M. Carioba, Senior Vice President and General Manager AGCO South America. "AGCO is committed to growth and the purchase of SFIL will better position us in the competitive marketplace."
AGCO manufactures farm equipment in three Brazilian factories for the South American market. Combines are produced in Santa Rosa (State of Rio Grande do Sul) and tractors are produced in factories located in Mogi das Cruzes (State of Sao Paulo) and Canoas (State of Rio Grande do Sul). AGCO generates approximately 15% of its sales in South America.
Safe Harbor Statement
Statements which are not historical facts, including expectations regarding market positioning, and sales growth are forward-looking and subject to risks that could cause actual results to differ materially from those suggested by the statements. These risks include possible declines in demand for products as a result of weather, demand and other conditions that impact farm income, actions by producers of competitive products, and the general risks attendant to coordination of efforts among two businesses. Further information concerning these and other risks and uncertainties is included in AGCO's filings with the Securities and Exchange Commission, including AGCO's Form 10-K for the year ended December 31, 2006. AGCO disclaims any obligation to update any forward-looking statements.
Founded in 1990, AGCO Corporation (NYSE: AG) (www.agcocorp.com) is a global manufacturer of agricultural equipment and related replacement parts. AGCO offers a full product line including tractors, combines, hay tools, sprayers, forage, tillage equipment and implements, which are distributed through more than 3,200 independent dealers and distributors in more than 140 countries worldwide. AGCO products include the following well-known brands: AGCO(R), Challenger(R), Fendt(R), Gleaner(R), Hesston(R), Massey Ferguson(R), New Idea(R), RoGator(R), Spra-Coupe(R), Sunflower(R), Terra-Gator(R), Valtra(R), and White(TM) Planters. AGCO provides retail financing through AGCO Finance. The company is headquartered in Duluth, Georgia, and in 2006, had net sales of US$5.4 billion.
CONTACT: AGCO Corporation
Rebecca Fabian, +49 221 420 75 28
Greg Peterson, +1 770-232-8229
Director, Investor Relations
SOURCE: AGCO Corporation