AGCO Corporation (NYSE: AGCO), a global leader in agricultural machinery and precision ag technology, recently announced an agreement to sell the majority of its Grain & Protein business to American Industrial Partners (AIP). The all-cash transaction is valued at $700 million, subject to customary closing adjustments.

“The divestiture of Grain & Protein supports AGCO’s strategic transformation, recently accelerated by the PTx Trimble joint venture, which closed in April 2024,” said Eric Hansotia, AGCO’s Chairman, President and Chief Executive Officer. “Divesting this business allows us to streamline and sharpen our focus on AGCO’s portfolio of award-winning agricultural machinery and precision ag technology products, which underpins a long-term focus on high growth, high margin and high free cash flow generating businesses.”

“AIP has extensive experience in the industrial sector and vast carve-out expertise, which we believe will unlock new potential for the Grain & Protein business. We believe the move will help ensure its brands continue to lead the market in grain, seed and protein production equipment and remain well-positioned to deliver for farmers,” added Hansotia.

The sale includes five primary Grain & Protein brands—GSI®, Automated Production®, Cumberland®, Cimbria®, and Tecno®—but excludes AGCO’s Grain & Protein business in China. AGCO anticipates a non-cash loss of between $450 million and $475 million related to the transaction.

Proceeds from the sale will be utilized for debt reduction, strategic investments in technology, and potential returns to shareholders. The transaction is expected to close before the end of the year, subject to regulatory approvals and customary closing conditions.