AGCO, Your Agriculture Company, a worldwide manufacturer and distributor of agricultural equipment, announced that it has reached agreement in principle to acquire the forage division of Lely Group. Lely’s forage division is a leading manufacturer of balers and loader wagons in Europe. 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.

“The integration of Lely’s industry leading competence in hay and forage technology will further strengthen AGCO’s full line product offering,” said Martin Richenhagen, AGCO’s Chairman, President and Chief Executive Officer.