A Montreal-area group of companies making electronic control systems and software for livestock barns can soon expect to see its brands join the ranks of Massey Ferguson and Challenger as part of Agco.
The Atlanta-based ag machinery giant recently announced plans to buy GSI Holdings Corp. from affiliates of Manhattan private investment firm Centerbridge Partners for US$940 million.
That gives Agco ownership of Thevco, Vic Systems, E2E Resolutions and Viatron Electronique, all gathered within GSI member company GSI Electronique Inc. Those brands joined the GSI Group through the sale of Thevco Electronique of St-Hubert, Que. to GSI in 2008.
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“With its high-quality products and services, recognized brands and global capabilities, GSI gives us strong positions in the grain storage and protein production segments and is well-positioned to benefit from increases in global grain and food demand,” Agco CEO Martin Richenhagen said in a release.
Agco’s “global presence, along with its manufacturing and purchasing capabilities,” are expected to provide “additional opportunities to GSI for growth and operational efficiencies.”
GSI is also expected to “significantly enhance Agco’s sales and profitability in its North American region.”
Vic Systems makes ventilation and barn management systems for livestock operations, while E2E makes electronic monitoring systems and software to track and log livestock water and feed consumption, barn environment and ventilation conditions and animal inventory, including remote online access. Viatron’s product offerings include Agri-Alert alarm systems for poultry, hog and dairy barns, greenhouses and food storage facilities.
In a letter to GSI dealers dated Oct. 3, GSI CEO Scott Clawson said the company doesn’t anticipate “any changes in your dealership relationship and arrangement with us because of today’s announcement.”
GSI, which books annual revenues of over US$700 million, is based at Assumption, Ill., northeast of St. Louis, and sells its product lines in a multi-brand approach similar to Agco’s.
The sale of GSI to Agco is expected to close before the end of this year, subject to regulatory approval.
