Deere & Company (DE) announced today that it has reached a definitive agreement to sell its irrigation operations, John Deere Water, to FIMI Opportunity Funds, the leading private equity firm in Israel. John Deere Water includes Plastro Irrigation of Kibbutz Gvat and U.S. irrigation equipment companies Roberts Irrigation Inc., and T-Systems International Inc. Kibbutz Gvat has agreed to the deal. John Deere Water has an annual turnover of $220 million, but its losses prompted Deere & Company to sell it.
Terms of the sale are not being made public; however, it is reported that the acquisition price was $60 million. Closing is expected in the second quarter of the 2014 calendar year. BofA Merrill Lynch served as the exclusive financial advisor to Deere for the strategic review.
FIMI Opportunity Fund is Israel's largest and leading private equity fund, with more than $2 billion in invested capital.