Well-known dairy and forage machinery company Lely is to sell its forage business to Massey Ferguson parent company AGCO.
The joint announcement that Lely is to focus on its dairy division and sell the forage divison, which makes forage harvesting machines, it says will allow the company to focus on milking robots and other dairy innovations.
Lely is a family-owned business and had, until now, focused on two totally different product categories and markets with its dairy and forage business units. Under a strategic review, it decided that to be able to continue operating successfully in the market, the organisation must adapt to the increasingly wide range of requirements of its different product groups.
CEO Alexander van der Lely said: “Lely intends to focus entirely on its role as innovator in the field of robotisation, and sensor and data systems for use on dairy farms. Over the last 15 years, these product groups have grown into a successful activity for Lely, with a great deal of potential for the future.
"Besides the innovative milking robot, other products have also been developed that are primarily based on automation with the aid of robots.”
At the same time AGCO’s CEO Martin Richenhagen said AGCO was pleased with this strategic acquisition.
“The integration of Lely’s industry leading competence in hay and forage harvesting will further strengthen our relationships with our dealers and customers worldwide”.
The transaction is subject to regulatory approval and is expected to close in the fourth quarter of 2017. Furthermore, the process for employee consultation will now be started.