Agco has announced that, subject to the approval of competition authorities, it will buy the Italian Argo Group’s 50 per cent stake in Laverda SpA to assume 100 per cent ownership of the company. The deal also includes the German-based manufacturer of grassland machineryFella.
This agreement follows the successful joint venture operation that was established with Argo in 2007 when Agco took a 50 per cent share in Laverda, which is based in Breganze, Northern Italy, and has been producing Agco’s Challenger, Fendt and Massey Ferguson combines since 2004. The factory, which also manufactures combines under the Laverda brand, is Agco’s European harvesting Centre of Excellence for combines and is one of the most modern and efficient farm machinery production complexes in Europe.
The announcement coincides with the start of production of Agco’s eight straw walker combines at Breganze, with the first of these combines coming off the assembly line in October. This development will be closely followed by the building of the first Breganze-produced Agco hybrid combines.
“This new step underlines Agco’s long-term strategy to accelerate the development of its harvesting equipment operations and to reinforce the extension of its combine ranges in Europe,” Agco chairman, president and chief executive, Martin Richenhagen, said. “It is another clear signal that we are fulfilling our pledge to deploy all the resources necessary to support our ambitious plans for the harvesting business with investment in manufacturing and in new product.”
“Our working partnership with the Breganze operation has been forged over many years and this is a natural and complementary step for both Laverda and Agco,” he added. “Laverda is a leading farm machinery brand with a strong reputation in the marketplace and we have major plans to continue to grow and develop its potential.”
Employing 450 people, the Breganze plant has produced combines for more than 50 years. Certified to ISO quality standards, the current 22ha site was opened in 1979. Since its collaboration with Agco, combine production has almost doubled and, with the recent addition of new combine models, is poised for further significant increases. Recent investments have seen a complete reorganisation of the supply chain and production process including the installation of robot welding and a new world-class header assembly line.
Valerio Morra, the president of Argo Group, which produces Landini and McCormick tractors, will remain on the Laverda board of directors.
“Our acquisition of 100 per cent of Laverda further strengthens Agco’s base of resources committed to the harvesting business,” Agco’s Gary Collar said. “Both the Fella and Laverda brands remain fundamental to our success and our existing close relationship with the teams at Breganze and at Fella will ensure not only a smooth transition but also a great opportunity to develop sales in these brands as well as our own existing Agco brands.”
For more information visit: www.agcocorp.com.
