Continuing an overseas shopping spree that is diversifying its product offerings and manufacturing operations, AGCO Corp. has agreed to acquire a controlling interest in a Brazilian firm.
The Duluth-based tractor maker is to spend $31 million to purchase 60 percent of Santal Equipamentos, which is headquartered in the city of Ribeirão Preto.
The acquisition is to add sugar-cane harvesting equipment to AGCO’s extensive repertoire of tractors and combines, giving the company a foothold in its outreach to Brazil’s many sugar-cane farmers.
Martin Richenhagen, AGCO’s chairman, president and CEO, called Santal an “excellent fit” for AGCO’s Brazilian aspirations and said its “products are recognized for their strength, quality and fuel efficiency by its customers, including the largest sugar producers in Brazil.”
The deal is subject to regulatory approval.
Visit www.agcocorp.com for more information.