Summary
Deere & Company (DE) has announced the completion of its acquisition of Richton International Corporation, a move that significantly expands its footprint in the irrigation services market. The acquisition, first agreed upon in May 2001, was finalized on October 2, 2001, following stockholder approval. Richton's core business, Century Supply, the largest U.S. distributor of landscape irrigation equipment, will be integrated with Deere's existing McGinnis Farms business to form John Deere Landscapes, Inc., positioning Deere as a national leader in this segment. The strategic rationale behind this acquisition is to enhance Deere's service and product offerings to customers in the landscaping and irrigation sectors. While the irrigation business represents approximately 80% of Richton's revenue, Deere is currently evaluating the strategic direction for Richton's information technology divisions. The transaction involved a mix of cash and Deere common stock for Richton shareholders, with a significant portion opting for stock.
Key Highlights
- 1Deere & Company has completed the acquisition of Richton International Corporation.
- 2The acquisition is aimed at expanding Deere's presence and capabilities in the irrigation services market.
- 3Richton's primary business, Century Supply (a leading irrigation equipment distributor), will be combined with McGinnis Farms to create John Deere Landscapes, Inc.
- 4John Deere Landscapes, Inc. is positioned to become the national leader in the irrigation business.
- 5The deal was approved by Richton stockholders and closed on October 2, 2001.
- 6A portion of the transaction involved Richton shareholders receiving Deere common stock (0.9697 shares per Richton share for stock elections) or cash ($36.1299 per share for cash elections or non-electing shareholders).
- 7Deere is assessing strategic options for Richton's information technology groups.