AGCO Looking For Acquisitions

AGCO Corp likes small, $50-$100 million, acquisitions and may spend about USD$200 million on deals this year, its CEO said.

“There are no large deals possible,” Chief Executive Martin Richenhagen (image right) told Reuters in a recent interview. “We’re in a strong position financially. Debt-to-capital is almost zero, cash flow is very strong, so we’re in a position to do those (small) deals without needing banks,” Richenhagen said.

“AGCO has no immediate plans to hike its prices, but any further increase in steel or other key inputs would drive an extra,” Richenhagen said.

Richenhagen said AGCO is in a strong position in South America and Europe but needs to grow in North America, where it has around a 10% market share.

“The target in North America is to grow our market share and we want to do that through technology and a better dealer network,” he said. ◆