AGCO

AGCO is a publicly held corporation focused on the global distribution of farm equipment through independent dealers and distributors to farmers engaged in agricultural production to meet the demand to feed an ever expanding population and provide crops for new industrial applications. The Company should be recognized throughout the world for the superior reliability of its products as measured by its market share leadership and the full service capability of its dealers in every market. Edward P. Allis Company merges with Fraser & Chalmers to form Allis-Chalmers Company, based in Milwaukee. Industry downturn leads to three-month shutdown of tractor and combine production plants. Farm equipment division is sold to Klöckner-Humboldt-Deutz AG (KHD); the German firm combines the division with its Deutz Farm Equipment subsidiary to form Deutz-Allis Corp. Robert Ratliff leads a management buyout of Deutz-Allis, which is soon operating as AGCO Corporation; headquarters are shifted to near Atlanta, Georgia. Company's stock listing shifts from the NASDAQ to the New York Stock Exchange; company buys the international operations of Massey Ferguson. The Valtra tractor and diesel engine operations of the Finnish firm Kone Corporation are acquired for $756 million. AGCO Corporation is the world's third largest manufacturer and distributor of tractors and other farm equipment (behind Deere & Company and CNH Global N.V.). Through its extensive network of more than 9,200 dealers serving more than 140 countries, AGCO builds and distributes products under brands that include AGCO, Ag-Chem, Challenger, Fendt, Gleaner, Hesston, Massey Ferguson, Valtra, and White, among others. AGCO has achieved explosive growth since 1990 through savvy business management and by acquiring competitors. Although AGCO itself was not created until 1990, the company boasts a rich history of success and innovation in the farm machinery industry. In fact, AGCO is the successor to Deutz-Allis Corp., which was formed in 1985 when Klöckner-Humboldt-Deutz AG purchased the agricultural unit of Allis-Chalmers Corp. In 1990 Klöckner spun off Deutz-Allis to a group of executives who formed AGCO. Thus, AGCO is effectively the offspring of the renowned Allis-Chalmers Corp. The Allis-Chalmers Corp. was the progeny of an American named Edward P. Allis. Allis was born in New York in 1824 and graduated from Geneva College in 1845. After college, Allis and a friend, William Allen, moved to Milwaukee, Wisconsin, where they opened the Empire Leather Store. This venture was a natural progression for Allis because his family was already involved in the leather business in that area. Through either sheer luck or great foresight, Allis sold his interest in Empire Leather shortly before the financial panic of 1857. A number of businesses, including Empire Leather, failed during the economic downturn. For the cash-rich Allis, the disaster was an opportunity. In 1861 he used his savings to purchase the financially troubled Reliance Works at a sheriff's auction. Reliance Works was a leading manufacturer of sawmills, flour milling equipment, and castings. Before 1857, Reliance had been one of Milwaukee's largest employers with a workforce of about 75. During the 1860s, Reliance Works of Edward P. Allis & Co., as the company was called, employed about 40 people working 55 hours per week. Allis constructed a new plant in 1868, and one year later he purchased his biggest rival, Bay State Iron Manufacturing Co. The company enjoyed strong profits until the financial panic of 1873, during which Allis went bankrupt. Chiefly because of the goodwill and faith of his creditors, Allis successfully renegotiated his debt and eventually recovered from the depression. The company remained intact, and even enjoyed a period of strong growth during much of the 1880s. By 1889, Allis employed 1,500 workers and shipped about $3 million worth of equipment annually. Allis died on April 1 of that year. He is