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Deere Closes EUR 4.357bn Acquisition of German Road Construction Equipment Maker Wirtgen
Wednesday 06 December 2017

6 December 2017 - Illinois, US-based heavy equipment manufacturer Deere and Company (NYSE: DE) has closed the acquisition of Germany based road construction equipment manufacturer Wirtgen Group to advance position in road construction equipment market, the company said.

The purchase price for the equity is EUR 4.357bn (USD 4.9bn) in an all-cash transaction. The total transaction value is approximately EUR 4.6bn (USD 5.18bn) including the assumption of net debt and other consideration.

Deere said the acquisition enhances its global distribution options in construction equipment and enhances our capabilities in emerging markets.

Deere said it 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, customer support, manufacturing and technology as well as in scale and efficiency of operations.

The Wirtgen Group had sales of EUR 2.6bn (USD 2.93) in the year ending December 31, 2016. Deere expects the transaction to be accretive to earnings per share and currently expects to fund the acquisition from a combination of cash and new equipment operations debt financing.

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.

Transaction advisors included Citigroup as exclusive financial advisor to Deere, Linklaters LLP as deal legal counsel, Kirkland and Ellis LLP as securities legal counsel and EY as accounting and tax advisor. The Boston Consulting Group served as a strategic advisor.

Deere and provides advanced products and services in the agricultural, construction, and forestry industry and manufactures machinery, diesel engines, drivetrains used in heavy equipment and lawn care equipment.
Details
Date Published: 06/12/2017
Target: Wirtgen Group
Country: Germany
Deal Size: 4.9bn (USD)
Sector: Construction/Real Estate
Type: Corporate acquisition
Financing: Cash
Status: Closed
Vendor:
Buyer: Deere and Company
Buyer Advisor: Citigroup , Linklaters , Kirkland and Elli , EY , Boston Consulting Group
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