AGCO Corporation reached agreement in principle to acquire forage division of Lely Holding S.à r.l.
March 12, 2017
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AGCO Corporation (NYSE:AGCO) reached agreement in principle to acquire forage division of Lely Holding S.à r.l. on March 13, 2017. The production in Maassluis will be reduced after sale and the expectation is that these activities will be discontinued as of March 31, 2018. All employees in The Netherlands remain employed by Lely. Approximately 95 employees working in production will temporary be seconded to AGCO Corporation. The German factories in Wolfenbüttel and Waldstetten will become the property of AGCO Corporation and the employees will be employed by AGCO Corporation. Some of the Forage employees of international Lely Support Organizations (LSOs) will be employed by AGCO Corporation. The Joint Works Council in The Netherlands will be asked for its advice about the sale, secondment and reorganization of Lely Holding. The relevant trade unions have also been informed of the sale. The transaction is subject to regulatory approval and is expected to close in the fourth quarter of 2017. Ernst & Young acted as financial advisor and Guillaume Valois, Romain Valère, Julien Burger of DLA Piper acted as legal advisor to Lely Holding S.à r.l. Elmer Veenman, Geoffrey van der Hauw, Julie Gijsbers, Christopher Parker and Lodewijk Hijmans van den Bergh from De Brauw acted as legal advisor to AGCO Corporation. Gleiss Lutz acted as legal advisor to AGCO Corporation.
AGCO Corporation is a designer, manufacturer and distributor of agricultural machinery and precision agriculture technology. The Company sells a range of agricultural equipment, including tractors, combines, self-propelled sprayers, hay tools, forage equipment, seeding and tillage equipment, implements, and grain storage and protein production systems. It provides telemetry-based fleet management tools, including remote monitoring and diagnostics, which help farmers improve uptime, machine and yield optimization, mixed fleet optimization and decision support. The Company's Precision Planting, Headsight and Intelligent Ag Solutions brands provide retrofit solutions to upgrade farmers existing equipment to improve their planting, liquid application and harvest operations. The Companyâs Precision Planting, Headsight, JCA and Intelligent Ag Solutions brands also sell precision agriculture solutions around the crop cycle to third party original equipment manufacturers (OEMs).