Kongskilde are known in Europe as popular makers of tillage, seeding, hay and forage equipment and less-known in Australia under the Kongskilde, Overum and JF brands.
New Holland believes this acquisition will broaden the scope of machinery products it offers to attract growers looking for tillage implements and extended hay and forage solutions.
Kongskilde will continue to operate through its current sales organisation and its dealer and importer network.
New Holland brand leader for Australia New Zealand, Mark Massingham said the acquisition is a perfect fit for the New Holland brand.
"Kongskilde and the sub-brands Overum and JF have a very high level of expertise in their respective specialties and bring with them a strong heritage and wealth of experience enabling us to expand our offering with tillage, seeding, and hay and forage implements that are perfectly suited to our conditions," Mr Massingham said.
The sale will see assets related to Kongskilde's tillage, seeding, hay and forage activities including plants in Poland and Sweden transferred to New Holland.
Agriculture brand president Carlo Lambro from New Holland said the transaction adds a key product range that will further broaden the company's product offering within the agricultural machinery sector.
"In the meantime the Kongskilde dealer and importer network will remain the reference point for their customers," Mr Lambro said.
"This agreement will provide growth opportunities and create a strong platform to develop the Kongskilde business and its brands while we gradually integrate their products into the New Holland portfolio," he said.