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Deere buying $5 billion road improvement business

There’s big growth in a different direction for Deere & Company: But the move, a release from the company states, could help diversify and solidify their business. The manufacturer is buying the Wirtgen Group, a privately-held international company that is the world’s leading manufacturer of road construction equipment, the release from Deere states.The total transaction value is about $5.2 billion. The Wirtgen Group had sales of $2.9 billion last year.According to the Deere press release, detailed financial information is in an investor presentation at www.JohnDeere.com/events-and-presentations.Headquartered in Germany, the Wirtgen Group has five premium brands across the road construction sector, the release says.“The acquisition of the Wirtgen Group aligns with our long-term strategy to expand in both of John Deere’s global growth businesses of agriculture and construction,” said Samuel R. Allen, Deere & Company Chairman and CEO. Max Guinn, President of Deere’s Worldwide Construction & Forestry Division, said it’s clear that society is spending more on road construction and transportation projects; the sector has grown at a faster rate than the overall construction industry — and, he said, it tends to be less cyclical.

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Ottumawa Courier
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