AGCO Corp. said it’s in talks to buy a manufacturer of sugar-cane harvesters in Brazil as it expands in the South American nation, the world’s top sugar producer.
AGCO, the world’s third-largest farm-equipment maker, will likely reach an accord next month, Chief Executive Officer Martin Richenhagen said yesterday in an interview, declining to identify the acquisition target. The company would be absorbed by AGCO’s Valtra brand, he said.
“The deal should be closed within four to six weeks,” Richenhagen said at Bloomberg’s Sao Paulo office. The target company “has a more comprehensive product line than we have today and our development and their existing products are a very good fit.”
Duluth, Georgia-based AGCO is looking to acquire companies that will expands its products and geographic reach. A deal in Brazil would follow the company’s announcement earlier this week that it will buy GSI Holdings Corp. from closely held Centerbridge Partners LP for $940 million.
“Today they do about 10 percent of their sales in Brazil only, and we think they can do much better because the market demand is very high,” Richenhagen said about GSI.
Richenhagen said the company is also developing its own sugar-cane harvester, which it will introduce by the end of next year.