AGCO seals the deal with Lely

Following 18 months of discussions, global agricultural equipment distributor AGCO has finalised its acquisition of Lely’s forage division and will take over its expansive line-up of equipment including balers, rakes, tedders, mowers and the Tulip range of wagons and tillage products.

Lely’s dairy division is not part of the acquisition and will continue to operate in its own rights as it focuses on its automated and milking robotic systems.

Lely Australia recently made its first public outing under AGCO ownership at the recent Elmore field days.

Speaking at a press conference at the field days, AGCO Managing Director & Vice President for ANZ, Warwick McCormick, says the acquisition is a great step forward for the company.

“The acquisition of Lely’s forage division offers a great opportunity to add world-class products to AGCO’s existing hay range which in Australia we offer with the Massey Ferguson brand and includes square balers, swathers, rakes, tedders mowers and telehandlers,” he says.

“Our dealers and customers will now be able to benefit from one of the best hay and forage product lines in the industry and a very experienced and professional support team.”

Following the consolidation, AGCO has created a new division called Green Harvesting which will be dedicated to its hay and forage business.

“We will combine our current hay products and resources and integrate them with the Lely division to create a dedicated and experienced team that will offer an unrivalled range of hay gear,” McCormick says.

Under the acquisition, AGCO will absorb all of Lely Australia’s staff members as well as Lely’s facility in Rochester, VIC.

The facility is expected to be transformed into AGCO’s Green Harvesting Centre of Excellence which will be developed over the next few years.

As for existing Lely customers, AGCO says it is business as usual and customers can continue to obtain parts and support from their dealers.

“The integration of the two groups is an exciting opportunity as we join forces with one of the world’s largest agricultural machinery companies,” says Lely Australia country manager, Mark Smyth.

“AGCO has a strong history of product innovation and invests heavily in research and development which will benefit the products that we’ll be able to offer our dealers and customers.”

As a result of the consolidation, AGCO and Lely will go through a product rationalisation phase to determine which models to keep and which ones to go, which will be largely based on performance of the products and sales volumes.

“Our goal is to offer the best range of products for the hay industry that covers all stages of the growing and handling cycle and all types of hay and forage applications plus offer our customers the best possible support from an extensive and experienced dealer network,” McCormick says.