CNH Industrial announces the execution of an agreement to purchase 90% of the capital stock of Sampierana, an Italian company specializing in the development, manufacturing and commercialization of earthmoving machines, undercarriages and parts. CNH is to obtain 100% control of the company over four years following closing of the transaction.
With this acquisition, the company aims to enhance its offering in the construction sector and gain greater in-house capabilities, control over the value chain and market share opportunities.
The total transaction will be equal to €101.8 million (CAD$151 million, USD$120 million) subject to certain closing and post-closing adjustments. The consideration will be funded with available cash on hand of CNH Industrial. Closing is expected to occur in the fourth quarter of 2021, subject to the satisfaction of customary closing conditions.
“This latest strategic acquisition will further accelerate the profitable growth of our construction equipment business. Sampierana’s exceptional portfolio solidifies our presence in critical market segments and provides our dealers and customers access to industry-leading products backed by our brand, distribution, and manufacturing experience,” said Scott Wine, Chief Executive Officer of CNH Industrial. “I want to thank Stefano Pampalone, President Construction, and his team, both for driving this deal to completion and for their excellent work turning around our construction business, rightsizing the footprint and returning it to profitability – an impressive achievement given the challenging period.”
Who is CNH Industrial?
Established in 1999, CNH Industrial deals in design implementation, manufacturing, distribution and commercial and financial activities in the construction and farming sectors.
According to CNH Industrial, it employs more than 64,000 people in 66 manufacturing plants and 57 research and development centers in 180 countries.
Notably, within the 12 brands under its umbrella are CASE Construction and New Holland Construction.
How will Sampierana impact CNH Industrial’s portfolio?
With dealings mostly in Europe, Sampierana is recognized in the construction sector for its line of Eurocomach mini and midi excavators.
CNH Industrial believes that Sampierana’s product range, customization capacity and electric prototypes will be an ideal fit with its customer-centric and sustainability-based approach.
Also, CNH Industrial sees this acquisition enabling its construction equipment business to integrate Eurocomach mini and midi excavators, Sampierana undercarriages and parts into its current product portfolio.
Sampierana is based in Italy with its headquarters and production sites. It operates a fully controlled subsidiary with production facilities in Kunshan, China.