Deere & Co. announced that it has entered into a joint venture with Hagie Manufacturing, which makes high-clearance sprayers.
Under terms of the agreement, Deere will acquire majority ownership of Hagie, which will continue producing sprayers at its current location in Clarion, Iowa.
Equipment made by the joint venture will continue to carry the Hagie brand, while sales and service for Hagie equipment will be integrated into Deere's global distribution channel over the next 15 months.
“Hagie Manufacturing is known for innovation and its strong customer understanding in high-clearance spraying equipment,” said John May, president, Agricultural Solutions, and chief information officer at Deere. “High-clearance spraying equipment is a new market for Deere. The expertise at Hagie allows John Deere to immediately serve customers who need precision solutions that extend their window for applying nutrients.”
May added that the joint venture investment allows John Deere to provide a broader range of sprayer options and integrate Deere's precision technology into Hagie equipment to help customers reduce costs and improve yields.
Alan Hagie, chief executive officer at Hagie, said, “We have great products at Hagie that help producers be more profitable, but we need a business model that helps us reach more customers. This partnership with Deere allows our solutions to reach customers on a global scale and ensure they are supported with the world-class Deere dealer organization.”
NCP Inc. was the exclusive financial adviser for Hagie on the transaction.
Hagie provides innovative crop protection solutions that drive economic benefits while also performing responsible stewardship and best agricultural practices.
Deere, based in Moline, Ill., provides advanced products and services to customers who cultivate, harvest, transform, enrich and build upon the land to meet the world's increasing need for food, fuel, shelter and infrastructure.