8-KRegulation FDOther EventsExhibits & Filings

DEERE & CO 8-K Report, Regulation FD Disclosure (Dec 5, 2017)

Filed December 5, 2017For Securities:DE

Summary

Deere & Company (DE) filed an 8-K on December 4, 2017, to announce the completion of its acquisition of Wirtgen Group Holding GmbH, a leading global manufacturer of road construction equipment. This significant transaction, valued at approximately $5.3 billion (or €4,475 million), positions Deere to expand its offerings in the construction and forestry sector with Wirtgen's comprehensive product portfolio covering processing, mixing, paving, compaction, and rehabilitation. The acquisition was financed through a combination of cash on hand, intercompany loans, and a substantial debt issuance. Investors should note that while the acquisition is completed, the filing also includes forward-looking statements that highlight potential risks and uncertainties related to the integration of Wirtgen, realization of expected benefits, and general market and economic factors. This acquisition marks a strategic move for Deere to strengthen its global presence and enhance its competitive position in the construction equipment market.

Key Highlights

  • 1Deere & Company has successfully acquired Wirtgen Group Holding GmbH, a significant player in the global road construction equipment market.
  • 2The total purchase price for the acquisition was approximately $5.3 billion (€4,475 million) in cash, with a portion held in escrow for indemnity obligations.
  • 3Wirtgen's operations, including its brands like WIRTGEN, VÖGELE, HAMM, and KLEEMANN, will be integrated into Deere's construction and forestry operating segment.
  • 4The acquisition was financed using a mix of existing cash, intercompany loans, and new medium-term debt financing of €850 million.
  • 5The filing includes standard forward-looking statements, cautioning investors about potential risks and uncertainties associated with the acquisition's integration and future performance.
  • 6Deere anticipates that Wirtgen's business will complement its existing offerings and expand its global reach in the construction equipment industry.

Frequently Asked Questions

The acquisition of Wirtgen Group is highly significant as it substantially expands Deere's presence in the global road construction equipment market. Wirtgen is a leading manufacturer with a comprehensive product line, allowing Deere to offer a more complete suite of solutions to its customers and strengthen its position in the construction and forestry segment.

Deere financed the acquisition and related transaction expenses through a combination of its existing cash on hand, repayment of intercompany loans from its financial services segment, and €850 million of new medium-term debt financing issued by a subsidiary in September 2017.

The filing mentions several risks, including the possibility that the expected benefits of the acquisition may not be realized, challenges in successfully integrating Wirtgen's business, significant transaction costs, and the potential for unknown or understated liabilities. General economic, political, and industry-specific risks are also noted.

Yes, the filing mentions Wirtgen's operating group of companies includes various well-known product brands such as 'WIRTGEN', 'VÖGELE', 'HAMM', 'KLEEMANN', 'BENNINGHOVEN', and 'CIBER'. These businesses and operations will be included in Deere's construction and forestry segment, implying the continuation of these brands under Deere's ownership.