Concrete Products is the leading source for Concrete Plants, Concrete Mixers, Precast, and Ready Mix news.

Wirtgen deal brings Deere into the thick of paving equipment market

Sources: Deere & Co., Moline, Ill.; CP staff

John Deere will significantly expand its construction equipment market stake with a $5.2 billion acquisition of Germany’s Wirtgen Group, projected to close later this year. Wirtgen encompasses namesake concrete paving equipment plus five other brands of milling, processing, mixing, paving, compaction and rehabilitation machines and tools deployed across road construction: Vögele, Hamm, Kleemann, Benninghoven and Ciber.

The group has a global footprint with approximately 8,000 employees and network of company-owned or independent dealers selling and supporting contractors in 100-plus countries. "Wirtgen's superb reputation, strong customer relationships and demonstrated financial performance are attractive as we expand the reach of John Deere construction equipment to more customers, markets and geographies,” says Deere & Co. CEO Samuel Allen.

“Spending on road construction and transportation projects has grown at a faster rate than the overall construction industry and tends to be less cyclical,” adds Deere Worldwide Construction & Forestry Division President Max Guinn. “There is recognition globally that infrastructure improvements must be a priority and roads and highways are among the most critical in need of repair and replacement."

Deere plans to maintain Wirtgen Group's existing brands, management, manufacturing footprint, employees and distribution. The combined business is expected to benefit from sharing best practices in distribution, customer support, manufacturing and technology, plus scale and efficiency of operations.