Forrester Farm Equipment has acquired AG-Industrial, adding four full-line New Holland agriculture dealerships in Maryland, Pennsylvania and Delaware and expanding its footprint to seven locations across four states.
The transaction significantly increases the Chambersburg, Pa.-based dealer’s reach across the mid-Atlantic while strengthening its ability to supply agricultural, construction and outdoor power equipment and support customers with parts and service. Both dealers represent the CNH dealer network through partnerships with the New Holland brand.
The acquisition follows years of discussions between leadership at the two family-owned companies, Forrester Farm Equipment President Cory Forrester told Equipment Finance News.
“After years of conversation with Terry Greenleaf [president of AG-Industrial] about potentially working together, an acquisition was always a possibility, just not an immediate one,” he said.
“It wasn’t on our bingo card for this year, but when Terry reached out to reopen discussion, we agreed the timing was right for both companies.” — Cory Forrester, President, Forrester Farm Equipment
Forrester Farm Equipment aims to ensure a seamless transition by maintaining AG-Industrial’s identity, team and customer agreements while identifying operational efficiencies that strengthen both dealerships and honor AG-Industrial’s 50-year legacy, Forrester said. The purchase price of the transaction was not disclosed.
Expanding partnership with CNH
Since both companies have long-standing ties with the New Holland dealer network, the combined organization plans to strengthen its collaboration with the OEM, Forrester said.
“Having equipment and parts readily available, backed by strong service support, is critical to our customers’ success,” Forrester said. “This acquisition immediately doubles access to whole goods and parts inventory and brings together the shared expertise of both teams.”
Product specialization at the two dealerships also creates new opportunities. Forrester Farm Equipment has a strong regional presence selling New Holland forage harvesters, while AG-Industrial has long carried the brand’s combines, Forrester said.
Long-term finance operations
Meanwhile, Forrester Farm Equipment expects finance and insurance offerings to be an important component of its growth as the combined organization expands, with CNH Industrial Capital to continue providing financing solutions, protection products and revolving lines of credit for parts and service, Forrester said.
“Their flexible financing solutions help us meet a wide range of customer needs while reducing upfront cost barriers and enabling customers to invest in the right equipment for their operations,” he said.
Forrester Farm Equipment structured the deal with support from Fulton Bank. While the company could self-fund the purchase, leadership chose to partner with the lender to maintain financial flexibility, Forrester said.
“Fulton has a long history in agriculture and understands the financial needs of a growing dealership,” Forrester said.
Additionally, the combined dealership plans to focus on operational improvements, product expansion and long-term growth across agriculture and construction equipment markets, Forrester said.
Other equipment industry M&A deals announced in February
The Forrester Farm Equipment transaction also adds to a wave of consolidation and expansion across equipment dealerships, OEMs and finance platforms announced in February, including:
- W&B Service, a Dallas-based trailer and transport refrigeration dealer backed by Stellex Capital Management, acquired Wichita, Kan.-based Sanders Trailer Service;
- Janesville, Wis.-based CNH dealer Johnson Tractor acquired fellow Wisconsin-based dealer Farmers’ Implement, growing its agricultural equipment dealership network across Wisconsin and Illinois;
- CAN Capital acquired the equipment finance portfolio and operating platform of Republic Bank Finance; and
- Norwalk, Conn.-based Terex completed its merger with Brookfield, Wis.-based REV Group, combining the two specialty equipment manufacturers
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