Deere to Consider Selling Irrigation Division
John Deere Water in San Marcos, California, a manufacturer of irrigation equipment for the agricultural market, is being considered for possible sale. The parent company, Deere & Company in Moline, Illinois, is reviewing strategic options for the future of this division.
Deere has retained Bank of America Merrill Lynch as exclusive financial adviser to assist in the initiative, but has made no formal decisions. "One of those strategic options would be to sell the operations, but it also could include a variety of other alternatives," said Deere spokesman Ken Golden. The company added that no agreements have been reached concerning the company's irrigation operations.
The business unit, which operates under Deere's turf and agricultural division, produces a full line of drip equipment, including drip lines and drip tape. Among the operations products they offer are an in-field moisture sensing and climate monitoring system known as John Deere Field Connect.
Deere first entered irrigation equipment manufacturing in 2006, with its acquisition of Roberts Irrigation Products, based in San Marcos, California. Two years later, it acquired T-Systems International Inc. in San Diego, California, and Plastro Irrigation Systems Ltd., headquartered in Israel. The three operations were combined to create what then was known as John Deere Water Technologies.
Today, John Deere Water employs 1,300 people in 18 countries, with the largest concentration of employees in the United States, Israel, India and France.The company said that effective water management remains an important part of turf and agriculture worldwide. It will continue to develop and offer products and services to help customers manage irrigation activities.