By: Deere & Co
MOLINE, Illinois – Deere & Company has signed a definitive agreement to acquire the Wirtgen Group, a privately-held international company that manufactures road construction equipment.
The purchase price for the equity is EUR 4.357 billion in an all-cash transaction. The total transaction value is approximately EUR 4.6 billion (USD 5.2 billion based on current exchange rates.
Headquartered in Germany, the Wirtgen Group has five premium brands across the entire road construction sector spanning milling, processing, mixing, paving, compaction and rehabilitation. Wirtgen’s highly complementary product portfolio enhances Deere’s existing construction equipment offering. The Wirtgen Group has a global footprint with approximately 8,000 employees and sells products in more than 100 countries through a large network of company-owned and independent dealers.
Max Guinn, president of Deere’s Worldwide Construction & Forestry Division, said, “This transaction enhances our global distribution options in construction equipment and enhances our capabilities in emerging markets. Spending on road construction and transportation projects has grown at a faster rate than the overall construction industry and tends to be less
Deere plans to maintain the Wirtgen Group’s existing brands, management, manufacturing footprint, employees and distribution network.
The transaction has been approved by Deere’s Board of Directors. The purchase is subject to regulatory approval in several jurisdictions as well as certain other customary closing conditions. The companies said they expect to close on the transaction in the first quarter of Deere’s 2018 fiscal year.
By: Deere & Co