DEERE & Co. announced last week that it has reached a definitive agreement to sell its irrigation operations to FIMI Opportunity Funds, a private equity firm in Israel.
After being involved in the production of irrigation products for seven years, Deere announced in September its intention to seek strategic options for the irrigation operations, known as John Deere Water.
Closing is expected in the second quarter of 2014. Terms of the sale were not made public.
While Deere is exiting the John Deere Water operations, the company noted that as a part of its John Deere FarmSight strategy, it will continue to develop and offer products and services to help customers improve the overall performance of their farming operations, including the current in-field moisture and climate sensing technology known as John Deere Field Connect.
John Deere Water is one of the world's largest full-line drip irrigation manufacturers, with significant distribution in North and South America, Asia, Europe and Africa.
FIMI is Israel's largest private equity fund, with more than $2.0 billion in invested capital. FIMI is currently investing through its fifth fund, which focuses on investing in selected mature Israeli or related companies with strong growth potential and a global footprint.