Chandlers Farm Equipment Ltd., a third-generation family business selling agricultural equipment, operating primarily across the Midlands and Lincolnshire, has acquired the AGCO division of Lister Wilder, doubling the size of its operations, and expanding its territory significantly across the UK to become AGCO’s largest UK dealership.
A global leader in the design, manufacture and distribution of agricultural solutions, AGCO is a network representing more than 4,200 independent dealers and distributors of some of the world’s most innovative agricultural machinery and equipment brands.
Chandlers, an AGCO dealer, was established in Grantham in 1935. The principal business activities are the supply and aftersales service of new and used agricultural tractors and farm equipment to the farming industry.
Similarly, Lister Wilder, a family run business also in its third generation was established in Reading in 1947. The company has evolved to become a well-known and well-regarded name within the industry, having expanded both organically and through acquisition over the years.
Having grown steadily within the AGCO and Kubota franchise networks, it became challenging for Lister Wilder to represent both brands in the long term. As a result, the company chose to uncouple from the ACGO franchise, by selling to fellow AGCO dealer Chandlers, who already operated successfully in an adjacent geographical territory.
The deal creates a £125m revenue business for Chandlers operating across the East of England, and allows Lister Wilder to refocus entirely on the Kubota brand which forms the bedrock of their operations.
Gavin Pell, Managing Director Chandlers said: “Our acquisition further strengthens our commitment to our customers, and the markets in which we operate.
“As the largest AGCO dealership in the UK, we are in a very strong position moving forward, least not for the fact we are backed by the world’s largest agricultural machinery company. The deal provides a mutually beneficial and pragmatic solution for both parties, and also means we can further enhance the range of products and services that we’ve become renowned for here at Chandlers.”
The transaction was completed by a specialist deal team from Smith Cooper Corporate Finance, led by Dan Bowtell. In light of completion, Dan comments “The deal comes off the back of AGCO’s ‘brand exclusivity’ strategy – something which Lister Wilder would have been unable to do due to long-standing arrangements with Kubota.
“This created an opportunity for both Chandlers and Lister Wilder – with Chandlers focussing primarily on expanding AGCO operations, and Lister Wilder choosing to refocus entirely on the Kubota brand having secured a successful sale of their agricultural division.
“The deal puts both parties in a fantastic position, and there is no doubt an exciting future ahead.”
HSBC provided funding to facilitate the acquisition, led by Jack Coley Relationship Director within the East Midlands Corporate Banking Team.
Legal advice was provided by Sills and Betteridge.