Your Agriculture Company (AGCO) (NYSE:AGCO) announced Monday it will acquire GSI Holdings in a deal worth $940 million.
A manufacturer and distributor of agricultural equipment, AGCO will purchase the company from affiliates of Centerbridge Partners, a private investment firm in New York, with approximately $17 billion under management.
With over $700 million in annual revenues, GSI Holdings manufactures grain storage and protein production systems, selling its product through over 500 independent dealers.
AGCO president and CEO, Martin Reichenhagen said: "GSI is an excellent fit with AGCO and will allow us to extend our reach in the agricultural industry and provide our customers with an even wider range of products and services.
"GSI gives us strong positions in the grain storage and protein production segments and is well-positioned to benefit from increases in global grain and food demand."
AGCO said the acquisition, which it will finance through Rabobank and its existing credit lines, will enhance its North American sales and profitability, as the deal is expected to be immediately accretive to AGCO's earnings and cash flow.
President and CEO of GSI Holdings, Scott Clawson, added that the transaction would allow it to expand both domestically and abroad. The deal is expected to close by year-end.
In New York, AGCO shares shed 4.6% to $32.98 per share as of 9:59 am EDT.