American Industrial Partners has announced a significant acquisition, taking over the Grain & Protein division of AGCO Corporation. This strategic move marks a pivotal moment for both companies, highlighting American Industrial Partners’ expanding footprint in the industrial sector and AGCO Corporation’s ongoing efforts to streamline its focus.

A Strategic Acquisition for Growth and Efficiency

The acquisition involves AGCO’s Grain & Protein division, which is renowned for its comprehensive range of solutions in grain storage, seed processing, and protein production systems. These solutions are crucial for optimizing the quality and yield of agricultural products globally. The division generates annual revenue of approximately $1 billion and operates 14 manufacturing facilities across North America, Brazil, Europe, and Malaysia, employing around 3,200 people.

American Industrial Partners, known for its expertise in industrial investments, sees this acquisition as a strategic enhancement of its portfolio. The division’s innovative technologies and trusted brands align with AIP’s commitment to improving food production efficiency and sustainability. The acquisition promises to leverage AIP’s operational excellence to drive growth and innovation in food storage and security.

Expert Opinions on the Acquisition

Robert Crain, Senior Vice President and General Manager of AGCO’s Grain & Protein division, expressed confidence in the deal, stating that AGCO is placing the division “in very capable hands.” Crain highlighted AIP’s multi-decade track record of success in complex industries, suggesting that AIP’s engineering and manufacturing expertise will accelerate growth for the division.

Eric Baroyan, Partner at American Industrial Partners, emphasized the strategic value of the acquisition, noting that the division is well-positioned for success due to its strong solutions in storage, process control, and environmental impact. Baroyan also pointed out the division’s international presence and its reputation among customers for enhancing efficiency and profitability.

Legal and Financial Advisories

The transaction involves significant legal and financial advisory support. Sidley Austin LLP is serving as legal counsel to American Industrial Partners, while Morgan Stanley & Co. LLC and Rabo Securities USA, Inc. are acting as financial advisors to AGCO. Santander US Capital Markets LLC is leading the fully committed debt financing for AIP, with Simpson Thacher & Bartlett LLP advising AGCO on legal matters.

Background on American Industrial Partners and AGCO

American Industrial Partners is a prominent industrial investor with approximately $16 billion in assets under management. The firm focuses on a range of industries, including aerospace, automotive, chemicals, and industrial technology. With a portfolio generating around $25 billion in annual revenues, AIP continues to build long-term value through strategic investments and operational improvements.

AGCO Corporation, headquartered in Duluth, Georgia, is a global leader in agricultural machinery and precision agriculture technology. With a diverse brand portfolio including Fendt, Massey Ferguson, and Valtra, AGCO aims to help farmers sustainably feed the world. The company reported net sales of approximately $14.4 billion in 2023.

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