Deere takes over Wirtgen Group
Acquisition of the road construction equipment giant will ensure leadership position for John DeereDeere & Company has signed a definitive agreement to acquire German road construction equipment manufacturer Wirtgen Group, for a transaction value of approximately 4.6 billion euros (about $A6.77 billion)
Headquartered in Windhagen, Germany, the Wirtgen Group features five equipment brands - WIRTGEN, VÖGELE, HAMM, KLEEMANN and BENNINGHOVEN – that covers the entire road construction sector spanning milling, processing, mixing, paving, compaction and rehabilitation.
Wirtgen's product portfolio will enhance Deere's existing construction equipment offering which currently includes wheel loaders, backhoe loaders, dozers, graders, skid steers and more.
The Wirtgen Group employs approximately 8,000 employees worldwide and sells products in more than 100 countries through a network of company-owned and independent dealers.
Deere & Company's Chairman and Chief Executive Officer, Samuel R. Allen, says the acquisition will help Deere expand further in global markets and increase its footprint worldwide.
"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," he says.
Wirtgen Managing Director, Stefan Wirtgen, says the company chose to work with Deere due to its reputation worldwide for providing quality equipment in the ag and construction industries.
"The Wirtgen Group has a legacy of technology and innovation with market-leading products and a strong focus on the customer," he says.
"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."
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 and is subject to regulatory approval in several jurisdictions as well as other customary closing conditions.
The companies expect to close the deal in the first quarter of Deere's 2018 fiscal year.
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