AGCO today announced that it has agreed to acquire 60% of Santal Equipamentos for $31 million, subject to regulatory approval. Headquartered in Ribeirão Preto, Brazil, Santal Equipamentos manufactures and distributes sugar cane planting, harvesting, handling and transportation equipment and replacement parts across Brazil.

"Santal's products are recognized for their strength, quality and fuel efficiency by its customers, including the largest sugar producers in Brazil. Santal is an excellent fit with AGCO and will allow us to expand our offering in the Brazilian sugar cane sector and provide our customers with an even wider range of products and services," stated Martin Richenhagen, AGCO's chairman, president and CEO.

Martin Richenhagen said last month a deal was at hand after AGCO's efforts to develop its own harvester proved to be unsatisfactory. Rivals Deere and CNH already have cane harvesters on the market. Sugar cane harvesters are expected to be hot sellers in Brazil in the coming years, as the government tries to eliminate the practice of burning fields to make the cane easier to cut by hand.