Agco Corporation (NYSE: AGCO) and Trimble (NASDAQ: TRMB) have announced the completion of their joint venture transaction, forming a new company known as PTX Trimble. Agco has acquired an 85% stake in PTX Trimble, with Trimble holding a 15% stake. As a result, the PTX Trimble joint venture will be consolidated into Agco's financial statements. The joint venture is set to provide farmers with enhanced access to next-generation precision ag tools, irrespective of the brands of tractors and implements they operate.
Agco's consolidated precision ag revenue is now anticipated to exceed $2.0 billion by 2028, with the transaction expected to contribute to Agco's revenue growth, adjusted operating margin profile, and adjusted earnings per share in the first full year post-close.
The transaction was financed through a combination of $1.1 billion in recently issued senior unsecured notes, a $500 million term loan facility, other borrowings, and cash on hand.
Agco is recognized as a global leader in the design, manufacture, and distribution of agricultural machinery and precision ag technology, with net sales of approximately $14.4 billion in 2023.
The market has reacted to these announcements by moving the company's shares -1.0% to a price of $62.54. If you want to know more, read the company's complete 8-K report here.
