Companies

CNH Industrial in $2.1 bln deal to buy Raven Industries

Credit: REUTERS/MASSIMO PINCA

Italian-American vehicle maker CNH Industrial has agreed a deal to buy Raven Industries at an enterpriuse value of $2.1 billion, the companies said on Monday.

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MILAN, June 21 (Reuters) - Italian-American vehicle maker CNH Industrial CNHI.MI has agreed a deal to buy Raven Industries RAVN.O at an enterpriuse value of $2.1 billion, the companies said on Monday.

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, they said.

"Precision agriculture and autonomy are critical components of our strategy," said CNH Industrial Chief Executive Scott Wine.

The deal requires approval from Raven's shareholders but is expected to close in the fourth quarter and will be funded with available cash.

CNH Industrial, which is controlled by Exor EXOR.MI, the holding company of Italy's Agnelli family, said it did not expect the proposed acquisition to have any impact on its financial forecasts for this year, including cash flow.

(Reporting by Giulio Piovaccari in Milan, Kanishka Singh in Bengaluru Editing by Kim Coghill and David Goodman)

((giulio.piovaccari@thomsonreuters.com))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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