World Grain - November 2023 - 64

SUPPLIER NEWS
AGCO to acquire Trimble Ag
assets, technologies
DULUTH, GEORGIA, US - AGCO Corp. has entered
into a joint venture with Trimble in which AGCO will acquire
an 85% interest in Trimble's portfolio of agricultural
assets and technologies for cash consideration of $2 billion
and the contribution of JCA Technologies.
The joint venture creates a global leading mixed-fleet
precision agriculture platform that will be the exclusive
provider of Trimble Ag's comprehensive technology offering,
supporting the future development and distribution of
next-generation agricultural technologies.
Trimble Ag, a division of Westminster, Colorado, USbased
technology company Trimble, offers a wide variety
of user-friendly technologies compatible across brands,
equipment models and farm types. Trimble's hardware,
software solutions and cloud-based applications span all
aspects of the crop cycle, from land preparation to planting
and seeding to harvest.
" This landmark transaction creates a JV that becomes the
premier mixed-fleet precision ag business in the world and
accelerates AGCO's strategic transformation, " said Eric
Hansotia, chairman, president and chief executive officer
of AGCO. " 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 is a global leader in the design, manufacture and
distribution of agricultural machinery and precision ag
technology. JCA Technologies, a leader in the emerging
area of autonomous agricultural machine systems, was acquired
by AGCO in 2022.
The joint venture will complement and enhance AGCO's
existing precision agriculture portfolio to deliver even
more industry leading solutions across the crop cycle while
supporting over 10,000 equipment models.
Longbrake
Longbrake rejoins 4B to lead inside sales
MORTON, ILLINOIS, US - Randy
Longbrake has been hired to lead the inside
sales team for 4B's Material Handling
Components Division.
In his new role, Longbrake will drive
sales generation, new customer development
and support.
" We're excited to have Randy back on
the team, and we have no doubt customers
will be even more pleased to have him behind their operations
again, " said Roger Bruere, vice president - Material Handling
Division. " He has the kind of detailed experience and industry
64
By combining these two precision agriculture portfolios
and leveraging multichannel access across Trimble Ag,
AGCO OEM & Aftermarket, other OEMs and precision
planting dealers, the joint venture will be positioned to
drive outsized growth and better provide next-generation
technologies to even more farmers around the world.
" The exclusive access to Trimble Ag products, combined
with AGCO's existing precision ag offerings also accelerates
AGCO's growth ambitions around autonomy, precision
spraying, connected farming, data management and
sustainability, " Hansotia said. " All of these touchpoints
will result in us being even more farmer focused. "
Commercial synergies resulting from direct access to
AGCO's global equipment, aftermarket, other OEM and
retrofit channels, in addition to modest run-rate cost synergies,
are expected to approximately double the joint venture's
EBITDA by year five following closing.
" Farmers today are looking for mixed-fleet solutions
across their tractors and the implements that they use to
most efficiently and sustainably feed the world, " said Rob
Painter, CEO of Trimble. " We believe a joint venture with
AGCO, complemented by the successful mixed fleet approach
that they have developed with their precision planting
business model, can 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 implies
a transaction multiple of approximately 13.8x based on
2023E EBITDA of approximately $170 million. Inclusive
of estimated revenue and run-rate cost synergies of $100
million by year three and the net present value of tax attributes
in excess of $50 million, the synergized multiple is
approximately 8.5x on a 2023E basis.
knowledge that's invaluable for customers to pull from. "
Longbrake previously served 4B material handling customers,
providing on-site support as well as identifying the right
solutions to help competitive businesses achieve goals. His
career also includes time with a variety of machinery industry
dealer-distributors and manufacturers, including more than 16
years with GSI Group. He has been actively engaged in the
industry throughout his career and was recently elected president
of the Grain Elevator and Processing Society (GEAPS)
Cornbelt Chapter.
Longbrake may be reached at rlongbrake@go4b.com or
1.309.339.4291.
November 2023 / World Grain / www.World-Grain.com
http://www.World-Grain.com
World Grain - November 2023

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