DE Deere and Co

By Austen Hufford 

Deere & Co. said Thursday it would buy a German-based maker of road construction equipment for EUR4.36 billion ($4.89 billion) in a move to expand its international footprint and construction business.

Deere reached a deal to buy Wirtgen Group, a privately held maker of road-building equipment.

Deere, the world's largest manufacturer of tractors and harvesting combines, said spending on road construction and transportation projects has grown at a faster rate than the construction industry as a whole and is generally less cyclical. The company said it plans to keep Wirtgen's brands, management, manufacturing footprint, employees and distribution network.

Wirtgen had 2016 sales of EUR2.6 billion in 2016. Deere generated $26.64 billion in revenue in its latest year, including $9.34 billion outside the U.S. and Canada.

The all-cash deal, which is subject to regulatory approval in several jurisdictions, is expected to close in the quarter ending in January 2018.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

June 01, 2017 08:14 ET (12:14 GMT)

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