Agco

The deal is expected to close by year's end and add 30 cents to Agco's 2011 earnings per share.

Agco Buys Grain-Storage Business Bob Tita 2011

He said that helped Agco executives become comfortable with the idea of acquiring GSI.

Agco Buys Grain-Storage Business Bob Tita 2011

GSI's customer base includes grain processors such as Archer-Daniels Midland Co., Cargill and Bunge Limited, as well as livestock and poultry producers Tyson Foods Inc. and Smithfield Foods Inc. Agco said the global market for grain-storage equipment is estimated at $3.5 billion a year and has been growing by 5% to 7% annually.

Agco Buys Grain-Storage Business Bob Tita 2011

"There's a significant amount of growth there," said Andy Beck , Agco's chief financial officer, during a conference call Monday with analysts.

Agco Buys Grain-Storage Business Bob Tita 2011

Illinois-based GSI will significantly increase Agco's revenue from North America and its penetration into the market for large farms.

Agco Buys Grain-Storage Business Bob Tita 2011

GSI has almost no overlap with Agco's farm machinery business, providing Agco with limited opportunities for cost-reducing synergies.

Agco Buys Grain-Storage Business Bob Tita 2011

GSI's sales have been growing at a 10.5% compounded annual growth rate since 2006, according to Agco.

Agco Buys Grain-Storage Business Bob Tita 2011

Georgia-based Agco is the world's third-largest tractor maker by sales behind Deere & Co . and CNH Global NV.

Agco Buys Grain-Storage Business Bob Tita 2011

Agco Corp. agreed to buy grain-storage-bin maker GSI Holdings Corp., a move that will expand Agco's business operations beyond manufacturing farm tractors and combines.

Agco Buys Grain-Storage Business Bob Tita 2011

The $940 million purchase of GSI from private-equity firm Centerbridge Partners LP is one of Agco's largest acquisitions in recent years.

Agco Buys Grain-Storage Business Bob Tita 2011