Extends Agricultural Reach into Grain Storage and Protein Production
Systems
DULUTH, Ga.--(BUSINESS WIRE)--Dec. 1, 2011--
AGCO, Your Agriculture Company (NYSE: AGCO), a worldwide manufacturer
and distributor of agricultural equipment, today announced that it has
completed the acquisition of GSI Holdings Corp. (GSI) from affiliates of
New York-based Centerbridge Partners, L.P. for $928 million, net of cash
acquired and subject to customary closing adjustments. This action
follows recent regulatory clearance of the transaction. GSI is a leading
global manufacturer of grain storage and protein production systems.
Headquartered in Assumption, Illinois, GSI sells its products globally
through more than 500 independent dealers.
“AGCO and GSI share a similar culture and commitment to superior
agricultural products and service, and together, we will give our
customers even greater access to technology to help them be more
productive and profitable,” stated Martin Richenhagen, AGCO’s Chairman,
President and Chief Executive Officer. “With its high quality products
and services, recognized brands and global capabilities, GSI gives AGCO
strong positions in the grain storage and protein production segments
and is well-positioned to benefit from increases in global grain and
food demand.”
“The integration of GSI into AGCO is a very positive step for our
company’s future development and its employees, customers and dealers,”
said Scott Clawson, President and Chief Executive Officer of GSI. “AGCO
provides excellent prospects for GSI, given its global presence, which
will open up new distribution and growth opportunities. At the same
time, GSI’s industry-leading products and expertise in grain storage and
protein production systems will also represent a major enrichment to
AGCO’s plans for market expansion. “We are excited about continuing our
success as part of the AGCO family.”
Effective today, Mr. Clawson is appointed Senior Vice President, AGCO
and Chief Executive Officer of GSI, reporting directly to Mr.
Richenhagen. “I am pleased to have Scott as a new member of our senior
management team,” said Mr. Richenhagen. “Scott has a strong track record
of success growing GSI’s revenue and profitability. I am confident he
will be a valuable leader as we work together to deliver quality
products to our customers and improved growth, profitability and value
for our shareholders.” In his new role, Mr. Clawson will work closely
with AGCO’s Regional General Managers to develop synergies and growth
opportunities across the globe.
Prior to joining GSI in 2007, Mr. Clawson served as Chief Executive
Officer of Ryko Enterprises, the largest manufacturer of vehicle wash
systems in North America and the second largest worldwide. Between 1998
and 2003, he held various executive roles at Danaher Corporation and
served as President of Gilbarco Veeder-Root, a $1 billion global leader
in petroleum equipment and services.
Safe Harbor Statement
Statements which are not historical facts, including expectations
regarding industry demand, product offerings, the impacts of
integration, sales growth and market position, 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 acquisitions. Further
information concerning these and other factors is included in AGCO’s
filings with the Securities and Exchange Commission, including its Form
10-K for the year ended December 31, 2010. AGCO disclaims any obligation
to update any forward-looking statements except as required by law.
ABOUT AGCO
AGCO, Your Agriculture Company, (NYSE: AGCO), a Fortune 500 company, was
founded in 1990 and offers a full product line of tractors, combines,
hay tools, sprayers, forage equipment, tillage, implements, and related
replacement parts. AGCO agricultural products are sold under the core
brands of Challenger®, Fendt®, Massey Ferguson® and Valtra® and are
distributed globally through 2,600 independent dealers and distributors
in more than 140 countries worldwide. Retail financing is available
through AGCO Finance for qualified purchasers. AGCO is headquartered in
Duluth, GA, USA. In 2010, AGCO had net sales of $6.9 billion. http://www.AGCOcorp.com
ABOUT GSI
The GSI Group, LLC. is a major worldwide manufacturer of a wide range of
agricultural equipment and systems. The Company believes that it is the
largest global manufacturer of grain storage systems and one of the
largest global providers of protein production equipment for swine and
poultry producers. The Company markets its agricultural equipment
primarily under its GSI®, DMC®, FFI™, Zimmerman™,
AP™, Cumberland®, Hired Hand™ and Agromarau™ brand names in
approximately 100 countries through a network of over 500 independent
dealers.
Source: AGCO
AGCO
Investor contact:
Greg Peterson, +1-770-232-8229
greg.peterson@agcocorp.com