Agco has agreed to acquire the remaining 50% stake in Laverda S.p.A. from the Italian Argo Group for 65 million euros. Laverda includes Fella-Werke GmbH, a Germany-based manufacturer of grass and hay machinery.
The company is also working to acquire Sparex Holdings Ltd and its trading subsidiaries from Rubicon Partners Industries LLP. Sparex is a global distributor of accessories and tractor replacement parts serving the ag aftermarket. Headquartered in Exeter, United Kingdom, Sparex has operations in 17 countries and exports to over 75 countries.
Both transactions are expected to close before the end of 2010.
The Laverda acquisition builds upon the joint venture operation established with Argo in 2007, in which Agco acquired a 50% share in Laverda S.p.A. Laverda, based in Breganze, Italy, has been producing combines under Agco's Challenger, Fendt and Massey Ferguson brands since 2004. It also manufactures combines under the Laverda brand.
“This new step underlines Agco's long-term strategy to accelerate the development of its harvesting business,” says Martin Richenhagen, Agco chairman, president and CEO, of the Laverda purchase. “Sparex is an excellent fit with Agco and will allow us to extend our reach in the agricultural aftermarket and provide our customers with an even wider range of products and services,” Richenhagen adds.