Machinery giant CNH Industrial has announced it plans to purchase Raven Industries, a United States-based precision agriculture company which has products available in Australia.
The buyout, at US$58 per Raven share and US$2.1 billion enterprise value, is expected to be finalised later this year and will enhance CNH Industrial’s technological offerings.
CNH Industrial chief executive officer Scott Wine says the purchase emphasises the company’s commitment to enhancing its precision agriculture portfolio.
“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,” he says.
“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.
“The combination of Raven’s technologies and CNH Industrial’s strong current and new product portfolio will provide our customers with novel, connected technologies, allowing them to be more productive and efficient.”
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CNH Industrial, which houses brands including Case IH, has announced plans to buy Raven Industries
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Brands under the CNH Industrial banner include Case IH and Case Construction, New Holland Agriculture and Construction and Iveco.
Raven Industries was founded in 1956 and comprises three business divisions, one of which is based around precision agriculture, while the others are an aerospace technology and high-performance specialty films.
The company had consolidated net sales of US$348.4 million between February 2020 and January 2021.