CNH Industrial N.V., the owner of New Holland, announced it has agreed to acquire the agricultural Grass and Soil business of Kongskilde Industries, part of the Dansk Landbrugs Grovvareselskab (DLG) of Denmark – one of Europe’s largest agribusinesses.
The deal encompasses the transfer of Kongskilde’s assets related to its Tillage, Seeding, and Hay Forage business, which develops, manufactures and sells solutions for agricultural applications under a range of brand names including Kongskilde, Överum, and JF. The company’s product line includes harvesters, mowers, rakes, plows, cultivators, seed drills, rock pickers, weeders, vertical tillage units, fertilizer applicators, and rotavators. These brands will continue to operate with their current sales networks, dealers, and importers in the short term. However, after the closing of the deal, all Klongskilde customers will be served by CNH.
As New Holland is primarily known for haying equipment and tools used across a span of agricultural segments, including dairy and livestock operations, this acquisition is being seen as complementary for CNH as its integration will broaden New Holland’s portfolio of agricultural machinery products it offers.
“This agreement will provide growth opportunities and create a strong platform to develop the Kongskilde business and its brands, and we will also gradually integrate its products into the New Holland portfolio,” Carlo Lambro, New Holland Agriculture brand president said in a company statement.
Under the terms of the agreement CNH will assume ownership of Kongskilde manufacturing plants in Overum, Sweden and Kutno, Poland along with additional sites located across North America and Mexico, the Middle East and Africa, and Asia-Pacific regions, according to Agriculture.com. An additional facility located in Hudson, Illinois will reportedly be leased by CNH.
The move to divest Kongskidle Agriculture will leave DLG better able to focus on its remaining core businesses that are active in the production of grain handling equipment, and equipment for paper, plastic and packing applications.
“This transaction represents a milestone in our targeted process towards creating a leaner and more focused DLG,” said Kim Balle, DLG’s chief operating officer. “The transaction will also enable DLG to develop Kongskilde Industry and Kongskilde Grain even further.”
“We are proud to welcome the well-established products and brands of Kongskilde, Överum and JF into the CNH Industrial Group. It is our intention to build upon these proud heritages and significantly increase their market access as part of our worldwide distribution network,” noted Richard Tobin, CEO of CNH Industrial.
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Lynda Kiernan