Deere to buy Wirtgen Group – Manufacturing News

on Jun1

1 June 2017 | 10:05 am

Deere said today it plans to buy a road equipment maker in a deal worth about $5.2 billion in what would be the largest acquisition in the company’s history.

The deal is for Wirtgen Group, a privately held company based in Germany.

“Wirtgen’s highly complementary product portfolio enhances Deere’s existing construction equipment offering and establishes Deere as an industry leader in global road construction,” Deere said in a statement.

Wirtgen has about 8,000 employees and sells in more than 100 countries, Deere said.

Wirtgen’s machines are used to lay concrete and asphalt for highways and roads, crush large rocks and to flatten roads after hot asphalt has been laid down.

“Spending on road construction and transportation projects has grown at a faster rate than the overall construction industry and tends to be less cyclical. There is recognition globally that infrastructure improvements must be a priority and roads and highways are among the most critical in need of repair and replacement,” Max Guinn, president of Deere’s Worldwide Construction & Forestry Division, said in the statement. “This transaction enhances our global distribution options in construction equipment and enhances our capabilities in emerging markets.”

Moline-based Deere said it “plans to maintain the Wirtgen Group’s existing brands, management, manufacturing footprint, employees and distribution network.”

Deere said it is paying about $4.9 billion for Wirtgen and that the total value of the deal is about $5.2 billion, “including the assumption of net debt and other consideration.”

The Associated Press contributed.

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