CNH Industrial has reached an settlement to purchase Raven Industries for US$2.1 billion, in a transfer to improve CNH’s place within the areas of autonomous and precision agriculture expertise.
The deal would see the guardian firm of Case and New Holland purchase 100 per cent of the capital inventory in Raven for US$58 per share. It’s anticipated to shut within the fourth quarter of 2021, pending shareholder and regulatory approvals.
“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,” says Scott Wine, CEO of CNH Industrial, in a June 21 information launch.
“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,” provides Wine. “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.”
Wine says Raven’s headquarters in Sioux Falls, South Dakota, will “continue to be a true center of excellence” inside CNH.
“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,” says Dan Rykhus, president & CEO for Raven Industries. “We look forward to CNH Industrial leveraging the Raven talent and culture, as well as the Sioux Falls community, as part of their vision and future success.”
As well as to its precision agriculture enterprise, Raven additionally has enterprise divisions targeted on specialty movies and liners, and aerospace — going again to Raven’s founding in 1956 as a maker of high-altitude analysis balloons for the U.S. authorities’s house program. CNH says it believes the engineered movies and aerospace segments “represent attractive independent businesses” and that it plans to assessment every enterprise to “best position them for future success and maximize shareholder value.”
Raven’s autonomous agriculture enterprise has expanded over the previous couple of years with the acquisition of Saskatchewan-based DOT Expertise Corp. and its autonomous platform in 2020 and buy of the AutoCart aftermarket driverless grain cart system from Sensible Ag in 2019. Final month, Raven introduced the launch of OMNi as its new model for its autonomous agriculture enterprise.