DULUTH, GEORGIA, US — AGCO Corp., a global leader in the design, manufacture and distribution of agricultural machinery and precision ag technology, has completed the previously announced sale of the majority of its Grain & Protein business to private equity investor American Industrial Partners (AIP), in an all-cash transaction valued at $700 million.

In conjunction with the transaction close on Nov. 1, AIP said the new standalone, privately held business will operate under the name Grain & Protein Technologies. Jacob Thomas has been named chief executive officer. Thomas joins the company from Carlstar, a supplier of specialty tires and wheels, where he was CEO and member of the company’s board.

Serving customers in over 100 countries worldwide, Grain & Protein Technologies employs more than 3,200 people across its 14 manufacturing facilities in North America, Brazil, Europe and Malaysia, generating an annual revenue of approximately $1 billion. AIP said the new company will continue to operate its portfolio of brands — GSI, Cumberland, Automated Production, Tecno and Cimbria — which manufacture equipment for grain, seed, poultry, egg and swine production.

“Divesting of Grain & Protein is a significant milestone in AGCO’s strategic transformation, accelerated by the PTx Trimble joint venture, which was completed in April 2024,” said Eric Hansotia, chairman, president and CEO of AGCO. “AGCO’s portfolio is now focused on award-winning agricultural machinery and precision ag technology products, which underpins a long-term focus on high growth, high margin and significant free cash flow generating businesses.”

AGCO said it will use the net proceeds from the transaction consistent with its stated capital allocation priorities, including debt repayment, disciplined investment in technology and organic growth initiatives and return of capital to shareholders.