As we reported in late July on KD-Country 94 and Z-96.3 News, AGCO had agreed in principal to acquire Precision Planting from the Climate Corporation. That deal is official done. Eric Hansotia, Senior Vice President of AGCO, released an open letter to the AGCO family and the industry yesterday afternoon.
“I am thrilled to announce that AGCO’s purchase of Precision Planting from The Climate Corporation has closed. Since our intent to acquire announcement in late July, there has been a lot of excitement in the market. Now that the deal has legally been completed, I want to explain what this acquisition means for growers, dealers and the market as a whole.
Customers: At the heart of Precision Planting is an intense focus on solving customers’ farming challenges with innovative, practical solutions and providing industry-leading in-field support. We fully intend to maintain and even grow those capabilities. We will expand the benefits of Precision Planting’s innovation by reaching more growers with a broader global distribution network. AGCO intends to continue growing the OEM customer base and strengthen the large existing account relationships. AGCO will also be expanding the scope of solutions to enhance our equipment across the crop cycle including our Fuse precision farming products and services.
Dealers: Our strategy is to continue the Premier dealer network model in the market. We will be adding to that base in order to grow globally and continue to strengthen the existing network.
Data: We are working on agreements with The Climate Corporation that will create strong linkage to its digital ag tools for customers and determine how best to enhance Fuse products. Our commitment to our customers that they should be in full control of their data is not changing.
This acquisition will strengthen our position as a full line partner for growers around the world by offering cutting edge technology to improve yields and profitability for our growers.”
It was initially reported in late July that, once the acquisition was official, the Precision Planting equipment would be manufactured at the Beloit Sunflower Plant. We will bring you more information on that potential local impact as it becomes available.