On Dec. 1, Deere & Company announced it has completed its acquisition of the Wirtgen Group.
In June, Deere announced the agreement to purchase the international, privately-held company for EUR4.357 billion in an all-cash transaction. The total value is about EUR 4.6 billion, including the assumption of net debt and other consideration. The Wirtgen Group had sales of EUR2.6 billion in 2016.
“The Wirtgen Group will enhance the size, scale and stature of our construction equipment business and will help Deere continue its global growth,” said Samuel R. Allen, Deere & Company chairman and chief executive officer.
Headquartered in Germany, the Wirtgen Group started as a haulage firm for construction materials in 1961. The company now includes five brands across the road construction sector spanning milling, processing, mixing, paving, compaction and rehabilitation. The brands include Wirtgen, Vogele, Hamm, Kleemann and Benninghoven.
The company employs about 8,200 people worldwide and sells products in more than 100 countries through a large network of company-owned and independent dealers.
“Our company’s strength and success comes from dedicated employees who are focused on helping customers succeed in the road construction industry. We believe this transaction allows the company to be successful well into the future – independent of our family ownership,” Jürgen Wirtgen, managing director at Wirtgen, said when the deal was first announced.
Wirtgen’s product portfolio complements Deere’s existing construction equipment lineup and positions Deere as a leader in global road construction. The Wirtgen Group has brands across the entire road construction sector spanning milling, processing, mixing, paving, compaction and rehabilitation.
Allen said the acquisition aligns with Deere’s long-term strategy to expand in both agriculture and construction – the company’s two global growth businesses.
“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,” Allen said.