CNH plows deeper agriculture furrow with $2.1bln Raven buy

CNH plows deeper agriculture furrow with $2.1bln Raven buy

MILAN- CNH Industrial has struck a $2.1 billion deal to buy Raven Industries to bolster its agricultural equipment business, as the Italian-American vehicle maker prepares to spin off its truck, bus and engine operations. Raven shares rose by 50% in New York early Monday, lifting its market capitalization into line with the terms proposed by CNH Industrial, whose Milan-listed stock turned slightly positive after initially falling by as much as 5.6%. CNH Industrial is the world's second largest agricultural equipment maker after John Deere, operating under the New Holland, Case IH and Steyr brands. "Precision agriculture and autonomy are critical components of our strategy," CNH Industrial Chief Executive Scott Wine said of the acquisition of Raven, which also produces high-performance specialty films as well as aerospace and defense solutions. Wine described the proposed purchase as "truly transformative" and left the door open to more acquisitions to expand what it is able to offer in the businesses it retains. "We will absolutely consider strategic acquisitions if we need to grow faster or more profitably," he told analysts. CNH Industrial will pay $58 per share for the U.S. agriculture technology company, a 33.6% premium to Raven's four-week volume-weighted average stock price, giving