Photo courtesy of Kepler Weber.
AGCO plans to also launch a tender offer to acquire up to all of the common shares held by the other shareholders for the purpose of delisting Kepler Weber shares from the São Paulo Stock Exchange. The price of the offer will be 22.00 Brazilian real ($7.03) per share, valuing Kepler Weber at 578.9 million real. AGCO said this price per share represents a 25.7% premium to the closing price of Feb. 9 and a 24.3% premium to the 3-month average share price of Kepler Weber. The offer and the consummation of the transaction are subject to customary conditions and regulatory approvals.
“The acquisition of Kepler Weber would significantly enhance our market position in the South American grain handling and storage industry,” said Martin Richenhagen, chairman, president and chief executive officer of AGCO. “Kepler Weber’s products are complementary to our GSI’s offerings and are recognized by its customers for their design, quality and innovation. This combination would also provide significant marketing synergies and a leadership position in the South American market as well as further strengthen our capabilities to serve large global customers.”
This is the latest in a series of acquisitions. AGCO purchased Cimbria Holdings Ltd., a manufacturer of products and solutions for the processing, handling and storage of seed and grain, in 2016; Farmers Automatic, Lauer, Germany, a poultry equipment manufacturer in 2015; Intersystems, Omaha, Nebraska, U.S., a material handling company, in 2014; and GSI, Assumption, Illinois, U.S., a manufacturer of grain storage and protein production systems, in 2011.
Rabobank is acting as financial advisor to AGCO and Pinheiro Neto Advogados is serving as legal advisor.