Lely sells forage business to AGCO
Hopes acquisition will allow the company to focus on dairy segment and roboticsDutch agricultural machinery specialist Lely has announced it is selling off its hay and forage arm to AGCO Corporation, which owns several ag brands including Massey Ferguson, Challenger and Valtra.
Lely says the decision was made to allow the company to focus on its dairy business.
"Lely intends to focus entirely on its role as innovator in the field of robotisation, and sensor and data systems for use on dairy farms," says Lely Chief Executive Officer, Alexander van der Lely.
"Over the last 15 years, these product groups have grown into a successful activity for Lely, with a great deal of potential for the future.
"Besides the innovative milking robot, other products have also been developed that are primarily based on automation with the aid of robots."
"The integration of Lely’s industry leading competence in hay and forage technology will further strengthen AGCO’s full line product offering," says AGCO Chief Executive Officer, Martin Richenhagen.
The acquisition means Lely's range of field equipment including balers, mowers, rakes, tedders and wrappers as well as all relevant technology will be handed over to AGCO. There will also be an effect on jobs and facilities around the world.
Some of the effects include:
- A reduction in production at Lely's main forage equipment manufacturing facility in Maasluis (The Netherlands) after the acquisition, due to the products' overlap with AGCO's current range. Production at this facility is expected to cease from March 31, 2018.
- All employees in The Netherlands will remain employed by Lely. Approximately 95 employees working in production will temporarily be seconded to AGCO.
- The German factories in Wolfenbüttel (balers) and Waldstetten (loader wagons) will become the property of AGCO and the employees will be employed by AGCO .
- Some of the forage employees of international Lely Support Organisations (LSOs) will be employed by AGCO.
The transaction is subject to regulatory approval and AGCO is expecting the deal to close in the fourth quarter of 2017.
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