AGCO and Trimble announce creation of PTx Trimble

The deal aims to integrate Trimble's precision agriculture division and AGCO's JCA Technologies, creating a company aimed at offering innovative solutions for farmers

01.04.2024 | 19:11 (UTC -3)
Cultivar Magazine, with AGCO information

AGCO Corporation and Trimble announced the closing of their joint venture (JV) transaction, dubbed PTx Trimble. The agreement aims to integrate Trimble's precision agriculture business and AGCO's JCA Technologies, creating a company aimed at offering innovative solutions for farmers, covering "factory fit" and "retrofit" applications in the precision agriculture market for mixed fleets.

AGCO acquired an 85% majority stake in PTx Trimble, while Trimble maintains a 15% stake. With this structure, PTx Trimble will be consolidated in AGCO's financial statements.

Eric Hansotia, President, Chairman and CEO of AGCO, expressed his enthusiasm for the joint venture: "Farmers around the world need technologies that support them to be more productive and profitable while minimizing the environmental impact of their operations. PTx Trimble will provide farmers greater access to next-generation agro-precision tools, regardless of the brands of tractors and implements they operate.”

The formation of PTx Trimble reinforces AGCO's technology offering in areas such as guidance, autonomy, precision spraying, connected agriculture, data management and sustainability.

Rob Painter, President and CEO of Trimble, highlighted the importance of the joint venture: "Farmers are the real winners here. By combining our expertise and resources through this JV, we aim to accelerate the pace of innovation. With a focus on open technologies, customers will benefit from technology solutions available to farmers operating a wide range of tractor and implement brands.”

With the consolidation of this partnership, AGCO anticipates that its consolidated revenue in precision agriculture will exceed US$2 billion by 2028. Additionally, it expects the transaction to contribute positively to AGCO's revenue growth, adjusted operating margin profile and earnings per share adjusted in the first full year after closing.

To finance the transaction, AGCO used a combination of $1,1 billion in recently issued senior unsecured notes, a $500 million term loan, other borrowings and cash on hand.

For more information about the deal, click here and read "AGCO to acquire Trimble Ag assets and technologies through joint venture."

Understand the name PTx

As per the press release, the name PTx is rooted in AGCO's heritage: precision agriculture (P) and advanced technologies (T) that multiply (x) the impact it creates for farmers through continuous, smart, and customer-centric technologies. farmer.

The symbol represents the precise lines and fields of agriculture and tells a story of global connection. To present a unified offering to the market, Precision Planting's visual identity is evolving as part of the new PTx brand portfolio, while maintaining the brand's well-known corn plant as a reference to its rich heritage. PTx Trimble's visual identity reflects that of the leading PTx brand.

Andrew Sunderman has been named general manager of PTx Trimble. Sunderman's 12 years of experience in various global AGCO roles, including most recently leading the JV integration team, positions him well to manage this business.

“Farmers rely on precision agriculture technologies to increase productivity, reduce waste and maximize their resources,” said Sunderman. "The launch of PTx and the start of the Trimble PTx JV allows us to better serve farmers by offering them retrofit and factory solutions to achieve their financial and operational goals."

Keith Crow will continue to lead Precision Planting as general manager.

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