AGCO completes $260 million sale of TAFE ownership interest

DULUTH, Ga. - AGCO Corporation (NYSE:AGCO), currently valued at $8 billion in market capitalization, announced Tuesday it has completed the sale of its ownership interest in Tractors and Farm Equipment Limited (TAFE) for $260 million, with after-tax proceeds of approximately $230 million. According to InvestingPro data, AGCO maintains a healthy financial position with liquid assets exceeding short-term obligations.

The transaction, finalized on September 30, activates several agreements between the two companies that were previously disclosed on June 30, 2025. Simultaneously, a Letter Agreement between AGCO and TAFE dated April 24, 2019, which was most recently amended on July 7, 2025, has expired.

AGCO, headquartered in Duluth, Georgia, is a manufacturer and distributor of agricultural machinery and precision agriculture technology. The company operates through several brands including Fendt, Massey Ferguson, PTx and Valtra.

The company reported net sales of approximately $11.7 billion in 2024.

Details of the agreements between AGCO and TAFE were filed with the U.S. Securities and Exchange Commission on July 1, 2025, as exhibits to a Form 8-K filing, according to the company’s press release statement.

In other recent news, AGCO Corporation reported its second-quarter 2025 earnings, which exceeded analysts’ expectations. The company posted an earnings per share (EPS) of $1.35, surpassing the forecasted $1.08, and reported revenue of $2.6 billion, exceeding the anticipated $2.53 billion. Following this earnings announcement, BMO Capital raised its price target for AGCO to $110 from $94, maintaining a Market Perform rating. The firm cited AGCO’s second-quarter earnings beat and improved guidance for the third quarter and full year as reasons for the target increase.

UBS, on the other hand, maintained a Neutral rating on AGCO with a price target of $119, noting the company’s strategic efforts to expand market share in North America. In a significant leadership change, AGCO appointed Brian Sorbe as President of its PTx division, effective August 25, 2025. Sorbe, with nearly three decades of experience in precision agriculture, will oversee the company’s technology portfolio. These recent developments highlight AGCO’s ongoing strategic initiatives and performance in the market.

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