CNH Industrial to acquire Raven Industries
SIOUX FALLS, S.D. (Dakota News Now) - CNH Industrial is expected to acquire 100% of Raven Industries this year. The sale isn’t expected to go through until the 4th quarter of 2021, but CNH Industrial is expected to acquire it with cash. CNH Industrial valued Raven at $2.1 billion.
In a press release Monday, CNH Industrial said this acquisition will enhance the company’s position global agriculture market.
The acquisition builds upon a long partnership between the two companies and will further enhance CNH Industrial’s position in the global agriculture equipment market by adding strong innovation capabilities in autonomous and precision agriculture technology.
“Precision agriculture and autonomy are critical components of our strategy to help our agricultural customers reach the next level of productivity and to unlock the true potential of their operations,” Scott Wine said. He is the CEO of CNH Industrial. “Raven has been a pioneer in precision agriculture for decades, and their deep product experience, customer-driven software expertise, and engineering acumen offer a significant boost to our capabilities. This acquisition emphasizes our commitment to enhance our precision farming portfolio and aligns with our digital transformation strategy.”
Raven’s President and CEO, Dan Rykhus, also responded to the news Monday morning, saying the board and management is excited for the future.
“For 65 years, our company has been committed to solving great challenges. Part of that commitment includes delivering groundbreaking innovation by developing and investing in our core capabilities and technology. By coming together with CNH Industrial, we believe we will further accelerate that path as well as bring tremendous opportunities and value to our customers — once again fulfilling our purpose to solve great challenges. Our relationship with CNH Industrial has expanded over decades, and we have a deep respect for one another and a shared commitment to transform agriculture practices across the world,” Rykhus said.
CNH Industrial is a global leader in the capital goods sector. There are 12 brands under CNH Industrial to develop things like tractors and agricultural machinery, buses and coaches, construction vehicles, and engines and transmissions. More than 64,000 people work for CNH Industrial in 180 countries.
Raven Industries is based out of Sioux Falls and is organized into three business divisions: Applied Technology (precision agriculture), Engineered Films (high-performance specialty films), and Aerostar (aerospace). CNH doesn’t expect anything to change for Raven as a company this year. But CNH Industrial plans to do a strategic review of each business to best position them for future success and maximize shareholder value.
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