June 30, 2016

30/06/2016: AGCO extends its grain storage and seed handling business with acquisition of Cimbria

http://www.agcocorp.com/
AGCO, a worldwide manufacturer and distributor of agricultural equipment, announced today that it has agreed to acquire Cimbria Holdings Ltd. for approximately US$340 million from Silverfleet Capital.
       
Cimbria, based in Thisted, Denmark, is a leading manufacturer of products and solutions for the processing, handling and storage of seed and grain. The transaction is subject to regulatory approval and is expected to close in the third quarter of 2016.
     
http://www.agcocorp.com/
Image: 드림포유
Cimbria’s extensive products and services support the cleaning, drying, storage and conveyance of grain and seed through the development, manufacture and installation of individual machines, customised systems and complete turnkey plants, as well as project management and process control consulting. Cimbria sales, which are expected to reach approximately US$240 million in fiscal 2016, are concentrated in Western Europe with growing exposure to Eastern Europe, Africa and the Middle East.
       

http://www.cimbria.com/
“The acquisition of Cimbria significantly enhances our market position in the European grain handling and storage industry,” said Martin Richenhagen, AGCO’s Chairman, President and Chief Executive Officer.
      
“Cimbria’s products are complementary to our GSI’s offerings and are recognised by its customers for their design, quality and innovation. This combination also provides significant marketing and cost saving synergies and will provide us with a global leadership position in the seed handling industry as well as further strengthen our capabilities to serve large global customers. With margins similar to GSI, the acquisition of Cimbria provides us an attractive opportunity to grow our business and expand our margins.”
     
Rabobank is acting as financial advisor and Herbert Smith Freehills is serving as legal advisor to AGCO.
      
Visit the AGCO site HERE and the Cimbria Site HERE
       

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