Bloomberg News

Agco Doesn’t See Additional Acquisitions This Year, CEO Says

February 07, 2012

Feb. 7 (Bloomberg) -- Agco Corp., the world’s third-largest farm machinery maker, doesn’t expect more acquisitions in 2012 after making its biggest purchase ever last year.

“We have nothing in the pipeline,” Martin Richenhagen, chairman and chief executive officer of the Duluth, Georgia- based company, said in a phone interview today. “There are not too many targets available,” and Agco is focused on integrating GSI Holdings, purchased last year for $940 million, he said.

Agco bought GSI in December to expand into production of silos and equipment for raising poultry and hogs. The company also announced plans last year to buy an 80 percent stake in Chinese equipment maker Shandong Dafeng Machinery Co. and a 60 percent stake in Brazil’s Santal Equipamentos, which manufactures sugar cane harvesters.

Fourth-quarter net income more than tripled to $285.3 million, or $2.90 a share, from $85.2 million, or 87 cents, a year earlier, the company said today. Excluding acquisition costs and a tax gain, per-share profit was $1.44, topping the $1.33 average of 15 analysts’ estimates compiled by Bloomberg.

Sales rose 16 percent in the quarter to $2.52 billion from $2.17 billion as demand increased in Europe and North America.

Deere & Co., based in Moline, Illinois, and Amsterdam-based CNH Global NV are the two largest farm-equipment makers.

--Editors: Tina Davis, Steven Frank

To contact the reporter on this story: Shruti Singh in Chicago at ssingh28@bloomberg.net

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net


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