American Industrial Partners, an industrials investor, has bought the grain and protein division of AGCO Corp. (NYSE: AGCO), a distributor of agricultural machinery and precision agriculture technology.
The acquired company designs, manufactures and globally markets grain storage and seed processing equipment and services as well as feeding, watering, climate management and control systems for worldwide protein production, principally poultry, swine and egg.
“Food production is a critical area of global growth and as a proven innovator with strong solutions addressing storage, process control, efficacy, and environmental footprint, the company is well positioned for success,” states Eric Baroyan, partner at AIP. “With operations across North America, Brazil, Europe and Malaysia, the company is highly regarded by its customers as an enabler of efficiency and profitability gains.”
Sidley Austin LLP is acting as legal counsel to AIP. Morgan Stanley & Co. LLC and Rabo Securities USA Inc. are acting as financial advisors to AGCO. Santander U.S. Capital Markets LLC is acting as financial advisor to AIP and its affiliate is leading the fully committed debt financing. Simpson Thacher & Bartlett LLP is acting as legal advisor to AGCO.