Vehicle maker CNH Industrial is set to acquire Raven Industries Inc, a US-based leader in precision agtech, for US$2.1 billion (US$58 per share). The deal is expected to close in the fourth quarter of 2021, subject to the approval of Raven shareholders and receipt of regulatory approvals.
The acquisition builds upon a long partnership between the two companies and will further enhance CNH Industrial’s position in the global agriculture equipment market by adding strong innovation capabilities in autonomous and precision agriculture technology.
CNH is currently the world’s second largest agricultural equipment manufacturer after John Deere, offering vehicles via its New Holland, Case IH and Steyr brand portfolio.
Headquartered in Sioux Falls, South Dakota, Raven Industries is a global technology partner for key strategic OEMs, agriculture retailers and dealers. The company is currently organized into three business divisions: Applied Technology (precision agriculture), Engineered Films (high- performance specialty films) and Aerostar (aerospace) with consolidated net sales of US$ 348.4 million for the twelve months ended January 31, 2021.
Raven Applied Technologies offers global customers a range of cutting-edge precision agriculture tools, such as field computers, application controls, guidance and steering, as well as wireless connectivity and data management services.
The company also offers an autonomous product suite, Raven Autonomy, featuring its patented VSN Visual Guidance System that can provide full canopy guidance and automatic row turnaround —eliminating human error, reducing operator fatigue and covering 20% more acres due to increased speed and ease of use.
Meanwhile, its Engineered Films and Aerostar segments are industry leaders in the high performance specialty films and stratospheric platform industries, respectively, which CNH Industrial perceives as attractive independent businesses with excellent near and long-term potential.
“Precision agriculture and autonomy are critical components of our strategy to help our agricultural customers reach the next level of productivity and to unlock the true potential of their operations,” said Scott Wine, CEO, CNH Industrial.
“Raven has been a pioneer in precision agriculture for decades, and their deep product experience, customer driven software expertise and engineering acumen offer a significant boost to our capabilities. This acquisition emphasizes our commitment to enhance our precision farming portfolio and aligns with our digital transformation strategy. The combination of Raven’s technologies and CNH Industrial’s strong current and new product portfolio will provide our customers with novel, connected technologies, allowing them to be more productive and efficient.”
“Our Board and Management are excited about this partnership and what it means for our future,” said Dan Rykhus, president & CEO for Raven Industries. “For 65 years, our company has been committed to solving great challenges.”
“Raven Industries’ capabilities, innovation culture, entrepreneurial spirit and engineering talent are impressive and will continue to thrive as part of the CNH Industrial family. Sioux Falls is and will continue to be a true center of excellence,” concluded Wine. “We are incredibly excited to collaborate in bringing our customers more integrated precision and autonomous solutions, not only to improve productivity and profitability, but also promote more sustainable solutions and environmental stewardship. Together, our teams will create a stronger business for our employees, dealer network, and customers, enabling us to shape the future of agriculture, augment our world-leading sustainability credentials, and maximize our growth opportunities.”