What is the Future for MacDon Industries?

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.

 

Shaun Haney

Shaun grew up on a family seed farm in Southern Alberta. Haney Farms produces, conditions and retails wheat, barley, canola and corn seed. Shaun Haney is the founder of RealAgriculture.com. @shaunhaney

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8 Comments

Reg

Shaun,
I’m not surprised at the “tender” for Macdon! It’s an opportune time for the short lines to cash in. It was not that many years ago Macdon was looking for investment to keep it’s aggressive R and D operating.
Your ideas of a suitor are probably 2 of 3– what about Rostselmash/Buhler/Versatile?? They have been very aggressive and they don’t have a windrower line. Besides Rostselmash serves the same markets that Macdon is already well established. That’s where my bet is!
Reg

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Northern Farmer

I concur Rostselmash Buhler is thr name that came to mind also. They are trying to be a full service company. The addition of headers and windrower seem to be a great fit. But the price tag might sour the deal a bit.

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matt

Versatile/ Buhler plans on being a full line dealer by 2015/16 so this would work into their plans.

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Andrew

What about other shortlines? Seedhawk? Seedmaster? Shulte? Bourgault? Degelman?

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Former MacDon Employee

They’re selling because they found that a 3rd-generation family ownership isn’t financially viable. I used to work there until yesterday, when they axed me 3 days before I would have become permanent. I advise any welders to stay away from MacDon. They are a horrible company to work for and they’ll jerk you around from day one. Four 3-month terms and 3 months probation before you are *considered* for permanence and benefits, and the summer shutdown resets whatever term you happen to be in. Last day of last term and we shutdown? Oh well, gotta start that last month over when you come back. Parking is atrocious, over 1600 employees and less than half that number of parking spots and at least a third of those are reserved for any idiot with half a brain and an office. There are also next to no opportunities for training. I was hired in November of 2011 and not once did I learn anything new such as torch cutting and I had to repeatedly ask to be trained on new jobs. Sorry for the rant, but I needed to get it off my chest.

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Kevin Damar

Cry much? Lie much? Any article ever written about MacDon is the opposite of what you say. Management is top of the line and that’s why people are so happy. It’s an incredible company to work for and your awful attitude is most likely why you were canned. Why let a bad apple like you spoil the whole barrel?

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Present MacDon employee

I’ve been with MacDon for 3 decades, and I find the family owned and oriented business practices to be right on target, the 4 terms and 3 month probation is a great way to insure that the people we hire are the right fit for the family / employee / comrade, environment.
Former MacDon Employee may not have fit, Sorry try again.

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