AGCO — BrandWiki

AGCO

Overview

AGCO Corporation

predecessor	Allis-Chalmers (1909–1985) Deutz-Allis (1985–1990)
former name	Gleaner-Allis Corporation Allis-Gleaner Corporation
type	Public
traded as	nyse: AGCO S&P 400 component
founded	1990
hq location	Duluth, Georgia, U.S.
area served	Worldwide
key people	Eric Hansotia (chairman, president, CEO) Damon Audia (senior vice president, CFO)
industry	Agricultural machinery
products	Tractors, Combines, Hay tools, Foragers, Seeding & Tillage equipment, Self-propelled sprayers, Smart Farming Technology, Diesel engines and generators
brands	Challenger, Fendt, Gleaner, GSI, Massey Ferguson, RoGator, TerraGator, Sunflower Manufacturing, Valtra, White Farm Equipment, JCA Technologies
services	Parts, service, finance
revenue	US$14.41 billion (2023)
net income	US$1.17 billion (2023)
assets	US$11.42 billion (2023)‡R1R‡
equity	US$4.66 billion (2023)‡R1R‡
num employees	27,900
num employees year	2023
website	agcocorp.com

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

History

1990–1996: Founding and early years

AGCO was established on June 20, 1990, when Robert J. Ratliff, John M. Shumejda, Edward R. Swingle, and James M. Seaver, who were executives at Deutz-Allis, bought out Deutz-Allis North American operations from the parent corporation Klöckner-Humboldt-Deutz AG (KHD), a German company which owned the Deutz-Fahr brand of agriculture equipment. KHD had purchased portions of the Allis-Chalmers agricultural equipment business five years earlier.[2] After the organization of the company, Robert Ratliff was selected to be the company's first chairman.

1997–2005: Major acquisitions and growth

In 1997 the company purchased Fendt which is based in Germany, the German tractor company.[12] 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.[13]

In 1998, AGCO made a joint venture with Deutz AG to produce engines in Argentina,[14] and purchased the Spra-Coupe and Willmar companies.[15] Spra-Coupe and Willmar are sprayer companies in North America. SpraCoupe originated in Bismarck, North Dakota. After being purchased 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.

In the year 2000, AGCO bought out its partner CNH Global N.V. in the Hay and Forage Industries joint venture.[16]

In 2001, AGCO purchased Ag-Chem Equipment, expanding its application equipment business.[17] Ag-Chem Equipment was based in Jackson, Minnesota, and developed the TerraGator flotation-type and RoGator rowcrop-type applicators. Also in 2001, the SpraCoupe and Willmar brands moved their manufacturing from Willmar, Minnesota, to the Jackson facility and the Agco-Allis and White tractor lines were merged in North America under the AGCO brand, continuing in the orange color.

In 2002, AGCO purchased rights to the Challenger name and the tracked tractors from the Caterpillar Corporation,[18] 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.[19]

In 2004, AGCO purchased the Valtra tractor company from the Kone Group, in Finland. The purchase of Valtra also included SISU Diesel engines.[20]. Before that AGCO hadn't had its own engine factory[21], instead it used engines from eight different manufacturers.[22]

2006–2020: Martin Richenhagen era

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 2006, AGCO saw its first change in the position of chairman since its founding with the selection of Martin Richenhagen to succeed Robert Ratliff.[23]

In 2007, AGCO bought 50% of Laverda S.p.A. from ARGO SpA, which included the Gallagnani and Fella-Werke hay equipment brands.[24][25]

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.[26]

Late in 2009, the firm announced that it would phase out orange AGCO tractors by 2011.[27]

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.[28][29][30]

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 75,000 sqft.[31] The expansion was completed in 2012.[32]

In 2011, the firm said that it will invest $40 million in its Hesston, Kansas plant with a new 200,000 sqft painting and finishing building. Construction began June 2011 and was completed in 2013.[33][34][35]

In October 2011, AGCO purchased GSI, based in Assumption, Illinois, a manufacturer of grain storage and handling equipment.[2]

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.[36] In 2013, AGCO started Fuse Technologies, a smart farming technology division.[37]

In 2016, AGCO acquired Cimbria, based in Thisted, Denmark, a processing, handling and storage of seed and grain business.[38]

In 2017, AGCO acquired Precision Planting, based in Tremont, Illinois, a planting equipment and technology business.[39]

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.

In September 2020, AGCO acquired 151 Research Inc., a Winnipeg, Manitoba based company that specializes in grain storage research and development.[40]