Deere to Buy German Road Construction Equipment Maker for $4.89 Billion
June 01 2017 - 8:29AM
Dow Jones News
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)
Copyright (c) 2017 Dow Jones & Company, Inc.
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