Last week it was reported that family-owned MacDon Industries Ltd is being put up for auction. As one the world’s largest manufacturer of windrowers, Reuters reported that the price tag could be for over one billion dollars.
At this point no reasons for the sale have been released but rumors of the potential interested buyers is purely speculation at this point.
MacDon Listings on IronSearch.com
The list of potential suitors listed to me by industry people and the reasons are listed below:
AGCO: It’s a big enough company to swallow the billion dollar asking price, and, also, the MacDon brand would stay alive in the AGCO “house of brands” model. MacDon would fit right in with White, Gleaner, Fendt and so on. If the family-owned MacDon is interested in keeping its brand alive AGCO, could provide that.
John Deere: Comes to mind immediately due to the January 2012 agreement between the two companies where MacDon agreed to sell windrowers as John Deere models. The John Deere/MacDon agreement shows the two companies have worked together previously and John Deere would be interested in drastically improving their windrowers which drove the distribution deal in the first place.
Private Equity: No specific fund comes to anyone’s mind but private equity is often involved in these types of deals nowadays. Reuters reported that Goldman Sachs is handling the auction which has the ultimate connection with private equity firms globally.
What are your thoughts? Do you think there will be another company interested in purchasing MacDon? Let us know in the comment section.
Details of the MacDon sale seem to limited at this point we will keep you updated as we get more information.