TORONTO -- Massey-Ferguson Ltd. has agreed to purchase Rolls-Royce Diesels International Division from Vickers PLC for some $28.5 million, the giant farm machinery maker announced Tuesday.
In London, Massey chairman Victor Rice said the diesel division would become part of Massey's Perkins Engines Division, a leading international producer of multi-purpose diesel engines.
The agreeent is subject to various approvals.
'The move reflects Massey-Ferguson's strategic decision to concentrate its resources in its core businesses, including agricultural equipment, industrial machinery, diesel engines and components,' Rice said in a statement.
Rolls-Royce Diesels, which produces a range of engines spanning from 200 to 1,200 horsepower, had sales of $86.5 million in 1982, while Perkins sales were $417.5 million in the same year. Perkins produces diesel engines ranging from 30 to 300 horsepower. Rice said the combination 'creates a product offering unsurpassed by any other diesel engine producer.'
Rice said the Rolls-Royce Diesel acquisition would continue its operations at Shrewsbury, England, where some 1,000 persons now work at a 718,000-square-foot facility.
On Nov. 28, Massey-Ferguson reported a loss of $11.9 million for the third quarter ended Oct. 31, compared with a loss of $227.0 million a year earlier. The company's nine-month loss de:lined to $41.1 million from $339.7 million in the comparable period of 1982.
