Agrico (Pty) Ltd has announced its intention to divest its mechanisation division, including its John Deere dealerships and other import agencies. It has agreed to sell the bulk of the division to AFGRI Equipment (Pty) Ltd as a going concern, pending regulatory approval. It intends to sell the balance of the division to other existing mechanisation dealers. The acquisition includes Agrico’s John Deere dealerships in Belville, Caledon, Ceres, Malmesbury, Moorreesburg, Piketberg, Rawsonville and Vredendal.
The purchase will be made by the AFGRI Equipment (Pty) Ltd division of AFGRI, which is the preeminent agricultural, golf and turf equipment retailer in Africa and Western Australia. It offers the world’s leading equipment brands and backs these brands with a support network of 25 strategically placed branches.
The acquisition will allow AFGRI to better service farmers in the Western Cape region and beyond, says AFGRI CEO, Chris Venter. “We are pleased with this new addition to the AFGRI group of companies, and are confident that this business is a good fit with AFGRI. It will bolster our existing product range in this market segment.”
Venter went on to welcome Agrico employees and clients into the AFGRI family and indicated that AFGRI is looking forward to a long-term, mutually beneficial relationship. There will be no retrenchments as a result of the acquisition. “The acquisition confirms AFGRI’s commitment and role in the development and success of the John Deere brand in South Africa and Sub-Saharan Africa,” he went on to say.
The acquisition of the various mechanisation agencies further extends AFGRI’s national footprint to ultimately benefit its clients.
With roots extending back to 1904, Agrico has 28 branches across South Africa. “Agrico will increase its focus on its water-related business and own-manufactured products. It will strengthen its presence in all areas currently served while expanding into sub-Saharan Africa. It retains over 800 of its 990 employees and will be further investing in its South African manufacturing- and retail operations,” said Walter Andrag, CEO of Agrico.