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Vermeer Corporation and the Dutch-based Lely Groupplan to jointly acquire 100% of the assets of...

Vermeer Corporation and the Dutch-based Lely Group plan to jointly acquire 100% of the assets of German agricultural baler and bale-wrapper manufacturer Welger Maschinenfabrik GmbH, which will give the new alliance a much larger global presence in grassland machinery and baling equipment. Lely has

provided modular cutterbars for Vermeer mowers and mower conditioners since 1989. In 2003, the companies' strategic alliance allowed Vermeer to market and service Lely hay & forage equipment in the USA under the Vermeer brand. Because Welger utilizes Lely's distribution network, Lely currently accounts for approximately 50% of Welger revenues, which recently were (67 million [euro]. Completion of the transaction is planned for April 1, 2008.

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