By Ben Fox Rubin
Deere & Co. (DE) agreed to sell a majority stake in its
landscapes business to private-equity firm Clayton, Dubilier &
Rice LLC, creating a new standalone company and allowing Deere to
focus on other businesses.
Deere will receive about $300 million in cash from the
transaction and will initially retain 40% of the business.
John Deere Landscapes, a unit of Deere's agriculture and turf
segments, was formed in 2001 when Deere purchased and merged two
companies that sold wholesale landscape supplies and irrigation
products. Two other acquisitions were added later, and now John
Deere Landscapes is one of the largest U.S. wholesale suppliers of
turf and ornamental agronomics, irrigation, outdoor lighting,
nursery and landscape materials, with over $1 billion in annual
revenue.
James Field, president of Deere's worldwide agriculture &
turf division, said the sale allows Deere to remain a part of a
"successful landscapes distribution business" while allowing it to
increase its focus on growth businesses in agriculture and
construction and the complementary businesses in turf and
forestry.
CD&R, which has managed the investment of more than $18
billion in 56 U.S. and European businesses, plans to close the
transaction in December. Paul Pressler, an operating partner at the
firm, will become chairman of the new company.
Deere shares closed Friday at $83.55 and were up 0.9% premarket.
As of the close, the stock was down 3.3% so far this year.
Write to Ben Fox Rubin at ben.rubin@wsj.com
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