university of ia american agricultural economics乔治亚大学美国农业经济学.pdf

“The Industry Has Changed, Have You?” The AGCO StoryG. Barton Pennington, Forrest E. Stegelin, and Steven C. TurnerUniversity of iaAmerican Agricultural Economics AssociationSalt Lake City, UtahAugust 2-5, 1998Copyright 1998 by G. Barton Pennington, Forrest E. Stegelin, and Steven C. Turner. All rights reserved. Readers may make verbatim copies of this document for mercial purposes by any means, providedthat this copyright notice appears on all such AGCO Corporation’s story is truly a remarkable one. From its unorthodox beginning in 1990as the ailing Deutz-Allis (formerly Allis-Chalmers) to its growth to over 18 internationally recognized namebrands representing 14 product lines, AGCO corporation’s ess is attributed to its founder RobertRatliff’s vision and determination. In seven years, AGCO has emerged as the third largest farm equipmentmanufacturer (in terms of market share) in the world (21%, behind New Holland and John Deere) and also asthird largest in the United States (15%, behind John Deere and Case with 50% and 20% respectively).Entering an industry plagued by the agricultural crisis and recession of the 1980's, Robert Ratliff had26 years experience with International pany and was (in 1988) the president and CEO ofDeutz-Allis, then owned by Klockner-Humboldt-Deutz (KHD) of West Germany. With the falling munism, KHD wanted to sell Deutz-Allis and focus on Eastern Europe’s emerging market. This led toRatliff’s opportunity for his initial buy-out, which he negotiated by selling Deutz-Allis receivables to financethe purchase for 40 cents on the dollar. Nontraditional financing of over $186 million enabled Ratliff toacquire other struggling equipment manufacturers throughout the early 1990's. In 1992 AGCO went public,and in 1994 doubled its business through a $329 million purchase of Massey Ferguson, the most widelyrecognized tractor brand in the world, from Varity Massey Ferguson deal made AGCO an overnight intern