David Cole, managing director of the new company, said the rationale behind the separation was to create two independent businesses, each having the freedom to develop their own strategies and able to focus on growth in their respective markets.
"This process of evolution, while challenging during its implementation, places the Turfcare business including Turfcare in Ireland and Denmark in an ideal structure for growth in current market segments and as importantly, for any new ones, when they should come along," Cole said.
Since 1 January, when Turfcare Technology came into effect, an approach has developed for the turf business to become part of Royal Reesink N.V., a Netherlands-based holding company. Lely and Reesink, with the full support of The Toro Company, have signed a "letter of intent" for Reesink to acquire the Lely Turf business.
Royal Reesink N.V. specialises in the distribution and sale of capital equipment and allied support services. There are 19 companies in the Reesink group. Significantly, this includes Jean Heybroek - the Toro distributor in the Benelux region of Europe. Heybroek has had a business relationship with Toro for 60 years, while Lely has been a Toro partner for 32 years.
Cole said at this stage the announcement is one of mutual intent to reach agreement for the change in the ownership of the turf business.
"While not finalised yet, this is seen as a further, positive opportunity for the future of the company's turf activity. The 'agreement of intent' with Reesink will now move to the final stages of a due diligence process with the completion of the transfer of ownership expected during the second quarter of 2016."