Allis-Chalmers will sell a unit to a German firm.

The board of Milwaukee-based Allis-Chalmers approved the sale of the firm’s agricultural equipment business, including Allis-Chalmers Credit Corp., to a subsidiary of Klockner-Humboldt-Deutz of West Germany. Allis-Chalmers also announced progress in negotiations for a recapitalization plan. The KHD transaction is subject to completing the recapitalization plan and a financing plan between KHD and Allis-Chalmers Credit’s lenders.