Agrico on Monday announced that it would dispose of its mechanisation division, including its John Deere dealerships and other import agencies, and that Afgri Equipment would absorb the bulk of the unit for an undisclosed amount.
Diversified agricultural solutions and precision farming equipment group Afgri aimed to expand its retail footprint with the acquisition, while Agrico aimed to refocus its attention on its water-related business and own-manufactured products.
“We have identified some opportunities that we are working on [and] some of them should be making the news in the near future,” said Agrico marketing and operations director Alfred Andrag.
The company, which planned to maintain a presence across its footprint, while retaining over 800 of its 990 employees, said it would invest further in its South African manufacturing and retail operations.
The balance of the division not acquired by Afgri would be sold to other mechanisation dealers.