Why Industrial Cnh has decided to launch aTotalitarian takeover bid its Raven Industries with a company value of 2.1 billion dollars? The question must also have been asked by the experts, who in fact have not particularly rewarded the Cnh actions either New York and in Milan at the opening of negotiations. But then the ratio of the acquisition by the subsidiary of Exor it must have emerged clearly. Let’s see what happened.
Raven Industries is an American company based in South Dakota (a Sioux Falls) specializzata in precision farming systems, radar systems and plastic products always dedicated to the primary sector. It is a real one boutique of innovation, which has a turnover that could reach 400 million by 2025, among other things with very high margins despite a sector, that of manufacturing, historically lacking in Ebitda. And this is the first point: the company proposes very high precision systems that guarantee to differentiate themselves from the traditional market.
But this specialization pays off: the offer of Industrial Name is in fact of $ 58 per share, with a premium of over 33% compared to the average rating over the past 30 days. The market has literally gone mad, with a growth in value of 50% precisely around at an altitude of 58 dollars, aligning itself with the OPA price.
Marriage, on the other hand, is perfect for two main reasons. On the one hand, because with this acquisition Cnh takes a huge step towards the new criteria that will dominate the agricultural world in the decades to come. Trivially it means advanced weather detection systems to determine when and how to sow; tools of autonomous driving; drones for plant analysis e the identification of any need for intervention.
On the other, Industrial Name – after the appointment of the ex Daimler Trucks e Volkswagen Gerrit Marx come Ceo designated by the spin-off of business on-highway (Iveco) – this time it focuses on the part off highway, that is, on those vehicles that cannot circulate on high-speed roads. The Ceo of the company, Scott Wine, recalled how much both precision and automatic agriculture are important for the future of the company.
On the other hand, with the entry of the Industry paradigm 4.0 also in other sectors – in addition to purely manufacturing ones – digitization and automation have totally transformed “ancient” works. And Cnh Industrial has understood this very well.