AGCO Announces Completion of Sale of TAFE Interest

Rhea-AI Summary

AGCO Corporation (NYSE: AGCO), a leading agricultural machinery manufacturer, has completed the sale of its ownership stake in Tractors and Farm Equipment Limited (TAFE) for $260 million. The transaction, finalized on September 30, 2025, will generate after-tax proceeds of approximately $230 million.

As part of the deal, several previously announced agreements from June 30, 2025, have become effective, while the Letter Agreement from April 2019 (amended July 2025) has expired. The transaction details are available in AGCO's Form 8-K filing with the SEC from July 1, 2025.

Positive

• Sale generates substantial cash proceeds of $260 million
• Strong after-tax proceeds of approximately $230 million
• Clean exit from TAFE investment with clear agreement terms

Negative

• Loss of strategic ownership interest in TAFE
• Potential impact on AGCO's presence in Indian market

DULUTH, Ga., Sept. 30, 2025 /PRNewswire/ -- AGCO Corporation (NYSE: AGCO), a global leader in the design, manufacture and distribution of agricultural machinery and precision ag technology, today announced the completion on September 30, 2025, of its sale to Tractors and Farm Equipment Limited ("TAFE") of AGCO's ownership interest in TAFE for an aggregate amount of $260 million, with after-tax proceeds from the sale totaling approximately $230 million.

As part of the sale process, the substantive provisions of several previously disclosed agreements AGCO entered into with TAFE on June 30, 2025, became effective, and the Letter Agreement between AGCO and TAFE dated April 24, 2019, as most recently amended on July 7, 2025, expired.

Details of the agreements can be found here, which also were filed with the U.S. Securities and Exchange Commission on July 1, 2025, as exhibits to a Form 8-K filing.

About AGCO
AGCO (NYSE: AGCO) is a global leader in the design, manufacture and distribution of agricultural machinery and precision ag technology. AGCO delivers value to farmers and OEM customers through its differentiated brand portfolio including leading brands Fendt®, Massey Ferguson®, PTx and Valtra®. AGCO's full line of equipment, smart farming solutions and services helps farmers sustainably feed our world. Founded in 1990 and headquartered in Duluth, Georgia, USA, AGCO had net sales of approximately $11.7 billion in 2024. For more information, visit www.agcocorp.com.

 

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SOURCE AGCO Corporation

FAQ

How much did AGCO sell its TAFE stake for?

AGCO sold its TAFE ownership interest for $260 million, with after-tax proceeds of approximately $230 million.

When did AGCO complete the sale of its TAFE stake?

AGCO completed the sale of its TAFE ownership interest on September 30, 2025.

What agreements were affected by AGCO's sale of TAFE stake?

Several agreements from June 30, 2025 became effective, while the Letter Agreement from April 2019 (amended July 2025) expired.

Where can investors find details about AGCO's TAFE sale agreement?

Details of the agreements were filed with the SEC on July 1, 2025 as exhibits to a Form 8-K filing.