AGCO acquires grain handling equipment company
AGCO announced on June 29 that it has agreed to acquire Cimbria Holdings Ltd. For $340 million from Silverfleet Capital. The transaction is still subject to regulatory approval; AGCO expects to close in Q3 2016.
Cimbria, headquartered in Thisted, Denmark, manufactures a variety of grain handling equipment, including loading chutes, screw and belt conveyors, intake systems, grain piping and valves, dryers and fans, screen cleaners and other seed processing equipment, silos and more. The company also installs individual machines, customized systems and complete turnkey plants.
Cimbria's total sales are expected to reach around $240 million in 2016. Current sales are concentrated in Western Europe, with an increasing presence in Eastern Europe, Africa and the Middle East.
In 2011, AGCO acquired GSI Holding Corp, and Martin Richenhagen, chairman, president and CEO, says the new acquisition is complementary to GSI's offerings.
"This combination also provides significant marketing and cost saving synergies and will provide us with a global leadership position in the seed handling industry as well as further strengthen our capabilities to serve large global customers," he says. "With margins similar to GSI, the acquisition of Cimbria provides us an attractive opportunity to grow our business and expand our margins."
