John Deere Looks to Buy Assets of Cotton Equipment Maker

By Jim.Robinson|December 17, 2009

Deere & Company of Moline, IL, USA, has made a conditional offer to purchase certain assets and customer relationships of BHC Manufacturing, which is located near Beit Hashita, Israel. BHC, which employs approximately 110 people, is a manufacturer of cotton picker repair parts for all makes of equipment and a supplier of cotton picker row units for other equipment manufacturers.

The action would allow Deere to expand its products and services in the company’s already successful cotton picker business.

“John Deere continues to focus on a strategy of global growth,” said Mark von Pentz, President, Agriculture & Turf Division. “This commitment extends to serving cotton customers around the world. By combining the manufacturing assets of BHC with Deere’s existing manufacturing capacity, John Deere will have improved capability, efficiency, and geographic reach to satisfy customer needs.”

Deere said the conditional offer is contingent upon the satisfactory completion of due diligence. Terms of the transaction were not made public. Deere said it anticipates completing due diligence in the 2nd quarter of its 2010 fiscal year.