AGCO and Trimble Finalize Collaboration, Establish PTx Trimble

AGCO Corporation  and Trimble have successfully concluded their joint venture (JV) agreement. The newly formed entity, PTx Trimble, amalgamates Trimble's precision agriculture division with AGCO's JCA Technologies, forging a pioneering company poised to enhance farmer experience in the mixed-fleet precision agriculture sector with both factory-fit and retrofit solutions.

Under the terms of the agreement, AGCO secures an 85% ownership stake in PTx Trimble, with Trimble retaining the remaining 15% interest. Henceforth, the financial performance of PTx Trimble will be consolidated into AGCO's financial statements.

"Farmers worldwide need technologies that support them to be more productive and profitable while minimizing the environmental impact of their operations," AGCO's Chairman, President and Chief Executive Officer, Eric Hansotia, said. "PTx Trimble will provide farmers greater access to next-generation precision ag tools, no matter what brands of tractors and implements they operate."

The establishment of PTx Trimble augments AGCO's holistic technology portfolio encompassing guidance systems, autonomy solutions, precision spraying technologies, connected farming solutions, data management platforms, and sustainability initiatives.

"Farmers are the real winners here," Trimble's President and Chief Executive Officer, Rob Painter, said. "By combining our expertise and resources through this JV, we aim to accelerate the pace of innovation. With a focus on open technologies, customers will benefit from tech solutions available to farmers across a broad range of tractor and implement brands."

AGCO anticipates its consolidated precision agriculture revenue to surpass $2.0 billion by 2028, with the transaction projected to contribute positively to AGCO's revenue growth, adjusted operating margin, and adjusted earnings per share within the first full year following the transaction's completion.

AGCO financed the transaction through a blend of $1.1 billion in recently issued senior unsecured notes, a $500 million term loan facility, additional borrowings, and existing cash reserves.