AFGRI expands with Greenline takeover

It gives AFGRI 11 dealerships throughout the Wheatbelt, strengthening its position as the biggest John Deere dealership in the southern hemisphere with a further 28 dealerships throughout Africa.

AFGRI's new branches are located at Perth, Boyup Brook, Witchcliffe, Wagin, Lake Grace and Pingelly, adding to Carnamah, Geraldton, Moora, Wongan Hills and Dalwallinu.

According to AFGRI operations director Gollie Coatzee, the company's intent is to increase its footprint in WA, opening up speculation for further acquisitions.

Mr Coatzee said short term plans are to consolidate for the next three to four months, focusing on a harvest-ready approach for all branches.

"We'll be talking with farmers in our new districts and assessing their needs," Mr Coatzee said.

"We already have plans to expand staff structures, recruiting new people, particularly in service and the precision ag side, so that we'll be ready for harvest.

"If other opportunities arise (to acquire more branches), we'll look at them but at this stage we prefer to stick to WA."

Mr Coatzee said the Greenline acquisition, which was finalised last Tuesday for an undisclosed sum, will provide greater economies of scale for the company.

"As technology improves and products become more advanced, additional experts in different fields are required," Mr Coatzee said.

"Therefore, economy of scale has become essential and this acquisition will provide AFGRI with the opportunity to align this strategy to its well-established vision of being the preferred supplier of premium agricultural equipment, services and solutions.

"This acquisition will broaden AFGRI's range of products and allow the company to serve larger markets with agricultural and turf equipment."

AFGRI is a leading agricultural company that started more than 90 years ago in South Africa. Its core focus is on grain commodities.

AFGRI South Africa provides services across the grain production and storage cycle, offering financial support and solutions as well as inputs and hi-tech equipment through the John Deere brand supported by a large retail footprint.

AFGRI Equipment has operations in South Africa and international operations in Zimbabwe, Zambia, Ghana, Botswana and Australia.

AFGRI Holdings in South Africa acquired T & H Walton Stores in 2004 and re-named its operations AFGRI Equipment Pty Ltd in 2013.

Significant investments have been made to have the necessary infrastructure and financial backing in place.

In 2015 the company acquired Jolly and Sons (Dalwallinu and Wongan Hills) and in January opened a branch in Carnamah, replacing the T and H Walton Stores buildings.

There was no comment from Greenline directors.