Deere & Company finalizes Wirtgen Group acquisition
By On-SiteFinancing acquisition Deere & Company John Deere Wirtgen
Deere & Company has completed its acquisition of German road construction equipment manufacturer, the Wirtgen Group.
Deere announced a definitive agreement to purchase the international, privately held company in June 2017, with expectations to close in the first quarter of 2018.
The acquisition aligns with Deere’s long-term strategy to expand globally in both agriculture and construction, said Samuel R. Allen, chairman and chief executive officer.
“The Wirtgen Group will enhance the size, scale and stature of our construction equipment business and will help Deere continue its global growth,” said Allen.
The Wirtgen Group sells products in more than 100 countries through 55 group-owned companies and a global network of independent dealers. The company’s five brands – Wirtgen, Vögele, Hamm, Kleemann and Benninghoven – span key areas of the road construction sector, including milling, processing, mixing, paving, compaction and rehabilitation. The group has three production facilities located in Brazil, China and India.
Deere anticipates the acquisition will elevate its current construction equipment offering with additional, complementary products, which will set the company up for growth in the global road construction industry.
The financial terms of the agreement are disclosed, with a total transaction value of approximately EUR 4.6 billion. Deere plans to maintain the Wirtgen Group’s existing brands, distribution network, manufacturing footprint and employees, of which there are approximately 8,200.
Deere is a U.S.-based, global manufacturer of agricultural, construction, and forestry machinery, as well as lawn-care equipment and diesel engines used in heavy equipment.
SOURCE: Deere & Company