AGCO Comments on Recent Schedule 13D/A Filing by Tractors and Farm Equipment Limited
February 19 2021 - 10:56AM
Business Wire
AGCO, Your Agriculture Company (NYSE:AGCO), a worldwide
manufacturer and distributor of agricultural equipment and
solutions, today commented in response to Tractors and Farm
Equipment Limited’s (“TAFE”) recent Schedule 13D/A filing with the
Securities and Exchange Commission. TAFE is a commercial partner of
the Company and shareholder, whose Chairman and Managing Director,
Ms. Srinivasan, serves as a non-independent director on the
Company’s Board of Directors. TAFE’s Schedule 13D/A filing contains
a letter to the Board making a number of misleading statements
about the Company’s business, ongoing corporate governance
enhancements and significant Board composition changes, requesting
that three individuals be appointed to the Company’s Board of
Directors.
The Board is continuing its systematic review, development and
implementation of best-in-class governance practices and a balanced
and measured director refreshment action plan, in addition to the
thoughtful execution of our recent management succession process.
To best identify director candidates whose skills and experiences
are aligned with AGCO’s strategic goals, the Company has engaged
Egon Zehnder, a leading executive search firm. After careful
evaluation, the Governance Committee, with Ms. Srinivasan attending
as a guest, unanimously approved this plan. This process reflects
the valuable input received through our broad-based shareholder
engagement efforts and underscores our focus on enhancing value for
all shareholders. As a result of this plan, the full Board,
including Ms. Srinivasan, recently welcomed the addition of both
Bob De Lange, Group President, Services, Distribution and Digital,
at Caterpillar Inc., who brings extensive digitalization and
distribution experience to the Board, and Matthew Tsien, Executive
Vice President, Chief Technology Officer at General Motors (GM) and
President of General Motors Ventures, who brings important
technology and product development expertise to the Board. As a
result of our ongoing Board refreshment efforts, with five new
independent directors appointed since 2017 and three directors not
standing for re-election at the 2021 Annual Meeting, average Board
tenure is expected to be less than six years by May 2021.
In addition to this refreshment program, we have executed
concrete actions in-line with our commitment to best-in-class
corporate governance practices, including (1) the appointment of a
new Lead Independent Director, Mike Arnold, the former President
and CEO of Ryerson, who brings proven Board experience and an
operational and leadership track record with global expertise in
industrial businesses, and whose role and responsibilities have
been enhanced to demonstrate the Board’s commitment to strong
independent oversight, (2) the rotation of Board leadership roles,
and (3) the adoption of term limits for Board leadership positions.
These actions have been viewed positively by our broader
shareholder base during our recent round of engagement.
AGCO remains focused on driving long-term shareholder value, as
evidenced by our recent performance. In the fourth quarter of 2020,
the AGCO team delivered strong operational results leveraging
improving markets to produce sales and earnings growth. Our
improved results allowed us to continue our robust investments in
premium technology, sustainable smart farming solutions and
enhanced digital capabilities. AGCO’s exceptional product line
continues to be well-received by our customers, as evidenced by our
strong year-end results.
We also remain intently focused on navigating the evolving
challenges of the COVID-19 pandemic. The health, safety and
well-being of all AGCO employees, dealers and farmer customers
continues to be AGCO’s top priority, and we are proud of our team’s
efforts that have enabled AGCO to support the global food supply
chain while keeping our factories and coworkers safe.
With respect to our ongoing Board refreshment program and
evolution of our governance practices, the Board is committed to
acting in the best interests of all our shareholders, including
TAFE and our independent shareholders, recognizing that Ms.
Srinivasan’s and TAFE’s interests may diverge from those of our
independent shareholders. The Board’s execution of this refreshment
and corporate governance plan, which includes its active review of
the candidates TAFE has identified for consideration and regular
engagement with Ms. Srinivasan, is ongoing and focused on ensuring
our Board has the proper skills, qualifications and independence to
serve the interests of all our shareholders.
About AGCO:
AGCO (NYSE: AGCO) is a global leader in the design, manufacture
and distribution of agricultural solutions and delivers high-tech
solutions for farmers feeding the world through its full line of
equipment and related services. AGCO products are sold through five
core brands, Challenger®, Fendt®, GSI®, Massey Ferguson® and
Valtra®, supported by Fuse® smart farming solutions. Founded in
1990 and headquartered in Duluth, Georgia, USA, AGCO had net sales
of $9.1 billion in 2020. For more information, visit
http://www.AGCOcorp.com. For company news, information and events,
please follow us on Twitter: @AGCOCorp. For financial news on
Twitter, please follow the hashtag #AGCOIR.
Please visit our website at
www.agcocorp.com
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Greg Peterson Vice President, Investor Relations (770) 232-8229
greg.peterson@agcocorp.com
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