John Deere announces plans to acquire the Wirtgen Group
Deere have just announced plans to acquire the Wirtgen Group, the global leader in road construction equipment.
A conference call for investors regarding the transaction is to be held at 10 AM ET on June 1, 2017.
“The acquisition of the Wirtgen Group aligns with our long-term strategy to expand in both of John Deere’s global growth businesses of agriculture and construction” said Samuel R. Allen, Deere & Company Chairman and Chief Executive Officer. “Wirtgen’s superb reputation, strong customer relationships and demonstrated financial performance are attractive as we expand the reach of John Deere construction equipment to more customers, markets, and geographies.”
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 and establishes Deere as an industry leader in global road construction. 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 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.”
Deere plans to maintain the Wirtgen Group’s existing brands, management, manufacturing footprint, employees and distribution network. The combined business is expected to benefit from sharing best practices in distribution, manufacturing and technology as well as in scale and efficiency of operations.
Stefan Wirtgen, managing director at Wirtgen, said, “The Wirtgen Group has a legacy of technology and innovation with market-leading products and a strong focus on the customer. As we looked to the future, we specifically chose Deere as the buyer because of our long-held respect for the organization and our full confidence that Deere is dedicated to the ongoing success of The Wirtgen Group and our employees worldwide.”
Stefan Wirtgen, managing director at Wirtgen, added, “Our company’s strength and success comes from dedicated employees who are focused on helping customers succeed in the road construction industry. We believe this transaction allows the company to be successful well into the future – independent of our family ownership.”
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.
The WIRTGEN GROUP (www.wirtgen-group.com) is an internationally operating group of companies in the construction machinery sector incorporating the traditional product brands: WIRTGEN, VÃ–GELE, HAMM, KLEEMANN, BENNINGHOVEN, and CIBER. As a technological leader, The Wirtgen Group offers its customers mobile machine solutions for road construction and road rehabilitation and plants for mining and processing minerals or recycling material and for the production of asphalt.
Deere & Company is a world leader in providing advanced products and services and is committed to the success of customers whose work is linked to the land – those who cultivate, harvest, transform, enrich and build upon the land to meet the world’s dramatically increasing need for food, fuel, shelter and infrastructure. Since 1837, John Deere has delivered innovative products of superior quality built on a tradition of integrity.