increase font size
The plan is to leverage multi-channel access across Trimble Ag, and AGCO OEMs, which include Fendt, Challenger, Massey, Valtra, and Gleaner.
Global agricultural machinery manufacturer AGCO is set to become a majority owner of Trimble’s precision agriculture business.
A recently announced joint venture agreement between the two companies, will see AGCO pay Trimble US$2 billion for an 85% stake in Trimble.
Meanwhile, JCA Technologies, the Manitoba-based autonomous technology company will also be brought under the joint venture umbrella.
The transaction is said to create the premier mixed-fleet precision ag business in the world and help accelerate AGCO’s strategic transformation.
“This deal significantly enhances AGCO’s technology stack with disruptive technologies that cover every aspect of the crop cycle, which ultimately helps us better serve farmers no matter what brand they use,” AGCO’s chairman and chief executive Eric Hansotia says.
The two companies say they plan to leverage multi-channel access across Trimble Ag, and AGCO OEMs, which include Fendt, Challenger, Massey, Valtra, and Gleaner, other OEM customers and precision planting dealers.
“The exclusive access to Trimble Ag products, combined with AGCO’s existing precision ag offerings will also help accelerate AGCO’s growth ambitions around autonomy, precision spraying, connected farming, data management and sustainability, and result in us being even more farmer focused,” Hansotia adds.
“Farmers today are looking for mixed fleet solutions across the tractors and implements they use to efficiently and sustainably feed the world,” Trimble chief executive Rob Painter explains.
“We believe a joint venture with AGCO, complemented by the successful mixed fleet approach that they have developed with their precision planting business model, will help us better serve farmers and OEMs together.”
The $2 billion purchase price for AGCO’s 85% ownership in the Trimble Ag business represents an implied enterprise value of approximately $2.35 billion and works out to a transaction multiple of approximately 13.8x based on 2023MY likely EBITDA of approximately $170 million.
The transaction is not subject to any financing conditions, with both companies saying they are expecting to close the deal in the first half of 2024.
Already causing a stir in the burgeoning ute sector, JAC (“Jack”) has raised its profile by being named as the latest major sponsor of June’s National Fieldays, where it will officially introduce its top-of-the-line T9 4WD double cab ute to the market, joining its fleet of 100% EV and Cummins diesel trucks.
New Holland is celebrating the 50th anniversary of the introduction its Twin Rotor threshing and separation technology, which has evolved from a single model in 1975 to a range today, led by the new CR10 and CR11.
The company behind the iconic TPW Woolpress, which fundamentally changed the way wool is baled in Australia and New Zealand, is turning 50.
Since Donald Trump’s import tariff announcement, the world has been on a wild economic ride.
Continental was founded in 1871, offering solutions for vehicles, machines, traffic and transportation.
New Zealand’s dairy sector cannot expect India to be a market for all its dairy products.
Meat processor ANZCO Foods’ net profit has plunged on the back of lower market returns which squeezed margins and impacted business performance.
OPINION: Most people will be aware of the Government's plans to boost coal, oil and gas production to meet energy requirements.
AgriZeroNZ has entered a new partnership with Britain's national innovation agency, Innovate UK.
Twenty rural community hubs across New Zealand will receive $5,000 to upgrade their facilities having been selected as the winners of Rabobank's Community Hub Competition.
As the dairy industry prepares to celebrate its top achievers at an awards night this Saturday, attendees are being warned to be aware of protests planned outside the venue – Baypark Arena, Mount Mauganaui.
OPINION: The good fight against "banking wokery" continues with a draft bill to scrap the red tape forcing banks and…
OPINION: Despite the volatility created by the shoot-from-the-hip trade tariff 'stratefy' being deployed by the new state tenants in the…
