Industrial Cnh has made an important acquisition to have even more weight in the precision agriculture market. The subsidiary of the Exor group has acquired Raven Industries, a leader in this technology, based in the United States. The agreement was signed “for $ 58 per share, representing a premium of 33.6% over the weighted average trading price of the past four weeks, or $ 2.1 billion of Enterprise Value“.
This is the largest acquisition made by CNH since its foundation as a Group in 2013. The company has clarified that it will finance the purchase with the liquidity currently available while the closing of the transaction is expected in the last quarter of 2021, in view of the achievement of the closing conditions, including the approval of the shareholders of Raven and the ok of the competent authorities.
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«Precision and autonomous agriculture are key elements in our strategy to support our agricultural customers in achieving ever greater productivity and unlocking the true potential of their businesses. This acquisition is in line with our digital transformation strategy. Raven has been a pioneer in precision farming for decades and her deep product knowledge, customer-driven software expertise and engineering acumen provide a significant boost to our capabilities.»Commented Scott Wine, CEO of Cnh Industrial.
Headquartered in Sioux Falls, South Dakota, Raven Industries is organized into three divisions: Applied Technology (precision agriculture), Engineered Films (high-performance specialty films) and Aerostar (aerospace), with consolidated sales of $ 348.4 million for the twelve months of operation ending January 31, 2021. The company is a global technology partner for strategically important OEMs, resellers and agricultural dealers. Synergies generated by the transaction are expected to amount to approximately $ 400 million in recurring revenue in 2025, resulting in $ 150 million in incremental EBITDA.