Farm equipment maker Deere & Co. recently announced it made a conditional offer to buy the assets and relationships of an Israeli-based manufacturer of repair parts for cotton-picking devices.
The proposed agreement is with BHC Manufacturing and is contingent on completion of due diligence by Deere & Co., which the company plans to achieve by the second quarter of fiscal year 2010. The purchase would allow the Moline, Illinois-based farm equipment manufacturer to expand its cotton-related products and services.
"This commitment extends to serving cotton customers around the world," Mark von Pentz, president of Deere's Agriculture & Turf Division, said. "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."
Trying to expand its global presence may be one of the ways Deere & Co. will to weather recent storms in the economy. For this fiscal year, the company reported earnings of $873 million, though net global sales and revenues declined 28 percent.