AGCO Corporation

AGCO Corporation is an American agricultural machinery manufacturer founded in 1990 and with its headquarters in Duluth, Georgia, United States. AGCO designs, produces and sells tractors, combines, foragers, hay tools, self-propelled sprayers, smart farming technologies, seeding and tillage equipment.

History

AGCO was established on June 20, 1990 when executives at Deutz-Allis, Robert J. Ratliff, John M. Shumejda, Edward R. Swingle, and James M. Seaver, bought out Deutz-Allis North American operations from the parent corporation Klöckner-Humboldt-Deutz AG (KHD), a German company that owned the Deutz-Fahr brand of agriculture equipment. KHD had purchased portions of the Allis-Chalmers agricultural equipment business five years earlier. Following the organization of the company, Robert Ratliff was selected to be the company's first chairman.

The company was first called Gleaner-Allis Corporation, then rearranged to be Allis-Gleaner Corporation, or AGCO. The Deutz-Allis line of tractors were renamed AGCO-Allis, and Gleaner became a brand of its own for combines. The Deutz-Allis brand continued in South America until 2001, when they were renamed AGCO-Allis. In 2001, AGCO Allis was renamed AGCO in North America.

In March 1991, AGCO purchased the Hesston Corporation located in Hesston, Kansas gaining hay and forage equipment as well as technologies such as the grain auger, invented in 1947 by Lyle Yost. Hesston had a 50 percent joint venture with Case International, now a part of CNH Global. AGCO purchased the White Tractor line from the Allied Corporation's White-New Idea company. In 1993, AGCO purchased the remainder of White-New Idea, gaining New Idea hay equipment, manure spreaders, White planters, from a large manufacturing plant in Coldwater, Ohio.

Also in 1993, AGCO purchased the North American distribution rights to Massey Ferguson, a worldwide agricultural equipment company. In 1994, they purchased McConnell Tractors, manufacturer of the large articulated Massey Ferguson tractors. AGCO developed the Agcostar line of articulated tractors. Later in 1994, the Black Machine line of planters was purchased.

1995 saw the purchase of the AgEquipment Group, which manufactured tillage equipment and loaders under the Glenco, Tye and Farmhand brands. In 1996, acquisitions went international with the purchase of Iochpe-Maxion in Brazil. This was the Brazilian company that had rights to the Massey Ferguson brand and manufacturing in the region, as well as the ''Maxion'' brand of industrial equipment. This was also the year that AGCO purchased Deutz Argentina, the number one leader of tractors in Argentina. Also in 1996, AGCO purchased Western Combine Corporation and Portage Manufacturing in Canada. Western Combine had previously purchased the assets of the Massey Combine Corporation's combine operation, which had been spun off by Massey Ferguson.

1997 was the year of the major purchase of Fendt in Germany, the German tractor company. Fendt is well known for its advanced technology and superior manufacturing quality. The acquisition of Fendt was contingent on three conditions; 1) The Fendt name would be retained, 2) The factory in Marktoberdorf would continue to operate, and 3) a fair price would be paid for the company. Also in 1997, AGCO acquired Dronningborg Industries in Denmark, the manufacturer of European Massey Ferguson combines, and former manufacturer of Dronningborg combines.

In 1998, AGCO made a joint venture with Deutz AG to produce engines in Argentina, and purchased the Spra-Coupe and Willmar companies. Spra-Coupe and Willmar are sprayer companies in North America. SpraCoupe originated in Bismarck, ND. Upon purchase by AGCO, the manufacturing of SpraCoupes was moved to Willmar, Minnesota where the Willmar branded fertilizer tenders and "Wrangler" articulated loaders were being manufactured. SpraCoupe and Willmar products were manufactured in Willmar from 1998 to 2001.

For the year 2000, AGCO bought out its partner CNH Global N.V. in the Hay and Forage Industries joint venture.

In 2001, AGCO purchased Ag-Chem Equipment, expanding its application equipment business. Ag-Chem Equipment was based in Jackson, Minnesota and developed the TerraGator flotation-type and RoGator rowcrop-type applicators. Also that year, the SpraCoupe and Willmar brands moved their manufacturing from Willmar, MN to the Jackson, Minnesota facility and the ''Agco-Allis'' and ''White'' tractor lines were merged in North America under the ''AGCO'' brand, continuing in the orange color.

2002 was the year that AGCO purchased rights to the Challenger name and the tracked tractors from the Caterpillar Corporation, giving the firm a well-known brand name and high-power tracked tractors. The firm further developed the Challenger line into: wheeled tractors, using tractors manufactured by Iseki, Agritalia, the Massey Ferguson factory and the Brazilian Valtra factory; combines, rebranding some Massey Ferguson/Gleaner -built combines; and hay equipment, using Hesston-built hay equipment. AGCO also purchased the Sunflower Manufacturing Company in Beloit, Kansas, which manufactures tillage, seeding and specialty harvesting equipment.

2004 brought about the purchase of the Valtra tractor company from the Kone Group, in Finland. Valtra had licensing agreements with the Eicher company in India for tractor production, and also with the HEMA group in Turkey. The purchase of Valtra also included SISU Diesel engines. Since 2012 this Finland based diesel engine manufacturer with production for example in Brazil has operated with name AGCO Power.

2006 saw a re-focusing of the various brands and subsidiaries, and the reduction of individual brands. AGCO announced plans to combine some, and make some only part of a larger brand, or co-branding. Examples include the Massey Ferguson 9635 Hesston self-propelled swather, and the AGCO 9365 Hesston self-propelled swather. Challenger has seen further expansion with the further consolidation of the AgChem brand into Challenger, and the introduction of Agritalia built tractors and an articulated Challenger tractor. In August of this year, AGCO saw its first change in the position of chairman since its founding with the selection of Martin Richenhagen to succeed Robert Ratliff.

In 2007, AGCO bought 50% of Laverda S.p.A. from ARGO SpA, which included the Gallagnani and Fella-Werke hay equipment brands.

In 2008/2009 AGCO, the Challenger, Valtra, and Massey Ferguson large row crop tractors were launched in Europe and North America respectively with AGCO's e3 Selective Catalytic Reduction (SCR) emission reduction technology.

Late in 2009, the firm announced that it would phase out the orange AGCO Tractors by 2011.

In late 2010, the firm announced the plan to acquire the remaining 50% of Laverda, which included Fella-Werke as well. The acquisition was finalized in March 2011.

In 2011, the firm plans to transfer its assembly of high-horsepower wheeled tractors sold in North America from Beauvais, France to Jackson, Minnesota, where it will expand the plant by . This expansion was completed in 2012.

In 2011, the firm said that it will invest $40 million in its Hesston, Kansas plant with a new painting and finishing building. Construction began June 2011 and was completed in 2013.

In October 2011, AGCO purchased GSI, based in Assumption, Illinois, a manufacturer of grain storage and handling equipment.

In 2012. AGCO acquired 60% of Santal Equipamentos, a sugar cane planting and harvesting equipment. It also purchased 80% of Shandong Dafeng Machinery Co, a combine harvester manufacturer in China. AGCO formed the Algerian Tractors Company joint venture with the Algerian brand Etrag with 49% ownership.

In 2013, GSI acquired Johnson System, based in Marshall, Michigan, a manufacturer of catwalks and towers. In 2013, AGCO started Fuse Technologies, a smart farming technology division.

In 2017, AGCO acquired Precision Planting, based in Tremont, Illinois, a planting equipment and technology business.

In 2017, AGCO acquired the forage machinery line from Lely, including balers, loading wagons, mowers, tedders, rakes and the rights to the entire portfolio of the defunct Mengele Agrartechnik. This included factories in Wolfenbuettel (D) and Waldstetten (D). The factory in Maassluis (NL) will be closed in 2018.

On January 1, 2021, AGCO transitioned to its third chairman in its history with the selection of Eric Hansotia to succeed the retiring Martin Richenhagen after a near 15-year tenure as head of the company.

In September 2021, AGCO acquired Faromatics (Farm Robotics and Automation), a precision livestock farming business.

In December 2021, Precision Planting announced an agreement to acquire Creative Sites Media, a software and app development company.

Manufacturing Sites

;Current

;Former
* Coldwater, Ohio, USA : White-New Idea Farm Equipment in 1999
* Independence, Missouri, USA : Gleaner Combines in 2000
* Willmar, Minnesota, USA: Spra-Coupe and Willmar Application Equipment in 2001
* Maassluis, Netherlands : Lely Hay Equipment in 2018

Brands

* Challenger
* Fendt
* Gleaner

GSI
* Massey Ferguson

Precision Planting

RoGator / TerraGator

Sunflower Manufacturing
* Valtra
* White Farm Equipment
* Laverda
* Fella

See also

* List of S&P 400 companies

References

Further reading

* ''Factory on the Plains: Lyle Yost and the Hesston Corporation''; Billy Mac Jones; Wichita State University; 1987; ASIN B0006EQOU0.

External links

*

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Agricultural machinery manufacturers of the United States
Tractor manufacturers of the United States
Manufacturing companies established in 1990
Manufacturing companies based in Georgia (U.S. state)
Companies based in Duluth, Georgia
Harvey County, Kansas
Companies listed on the New York Stock Exchange
Companies formed by management buyout
Diesel engine manufacturers
Electrical generation engine manufacturers
Marine engine manufacturers