***LELY - LELY HOLDING S.a.r.l. ACQUIRES MENGELE AGRARTECHNIK AG***

Monday, 7th June, 2010
Holland-based Lely, a leading player in the agricultural business and German-based Mengele, a household name for agricultural products to many farmers, are pleased to announce that as of June 1, 2010 Lely will acquire 100% of the shares of Mengele.
 
In May 2009, both companies started a strategic alliance, enforced by Lely's strategic interest in Mengele Agrartechnik AG. For Lely this move meant a welcome enhancement of its Forage Solutions portfolio, while Mengele could significantly strengthen its sales and distribution network beyond the German-speaking countries. In Germany, Austria and Switzerland all activities were continued through Mengele´s existing distribution channels.
 
"Adding the Lely Tigo loader wagon to our product portfolio, has proved to be a very good decision. We were able to successfully sell the loader wagons in our key markets, exceeding our expectations even in challenging market circumstances. Moreover, we also succeeded in strengthening our dealer presence in some of our key markets", says Niels Havermans, Managing Director of Lely International. "The loader wagon as engineered and produced by Mengele is one of the most accepted and is clearly recognized in the market for its durability and quality."

In its Waldstetten production site, Mengele will continue to manufacture loader wagons and silage loader wagons, spreaders, forage harvesters and trailers for farmers and agricultural contractors. The company employs 65 people.

"Becoming part of such an internationally focussed company with clear ambitions and objectives for cattle farmers and contractors, is of benefit both to our employees as well as to our customers. It will improve market coverage for our products and allow us to continue to offer quality products well into the future, while customers are assured of the high quality service organization of Lely in more than 60 countries all over the world", says Karsten Schulz, CEO of Mengele Agrartechnik.


By adding this loader wagon product line to its Forage Solutions range, Lely now boasts an all-embracing portfolio including Lely Splendimo mowers, Lely Lotus tedders, Lely Hibiscus rakes, Lely Welger balers, Lely Attis balewrappers and Lely Tigo loader wagons.

Niels Havermans added: "We are delighted to have the opportunity to acquire such a strong line of products, which will help to further strengthen Lely's positions. Germany is one of Lely's key strategic markets in the world and the fact that we can include another German household name in our portfolio now also in Germany, will help us to grow our presence. This is an exciting opportunity for Lely and one that underscores our commitment to become one of the top players in forage harvesting solutions".