Replies to post #14843 on The Rising Influence of Rising Affluence

[DewDiligence]

DE FY2Q17 CC slides:

https://s2.q4cdn.com/329009547/files/doc_financials/quarterly_earnings/2017/Q2-2017/2Q_2017_Earnings-Call-Information-Slides.pdf

[DewDiligence]

DE acquires (private) Wirten Group for €4.36B* cash—largest acquisition in DE’s history:

https://www.wsj.com/articles/deere-to-buy-german-road-construction-equipment-maker-for-4-89-billion-1496318371

Demand for Wirtgen’s road pavers in markets like China and Brazil is growing faster than in the U.S. construction and agricultural markets… Expanding Deere’s construction business overseas has been a priority for Chief Executive Sam Allen. Construction-equipment currently accounts for a fifth of Deere’s sales.

The Wirtgen acquisition is the largest in Deere’s history, far surpassing the second-place purchase of forestry equipment-make Timberjack in 1999 for $600 million.

… Deere’s construction and forestry business had sales last year of $4.9 billion with a pretax margin of 3.7% Wirtgen’s sales last year were $2.6 billion with a pretax profit margin of roughly 13%. Mr. Allen, who headed Deere’s construction-machinery business before becoming chief executive in 2009, said he first approached the Wirtgen family about a sale in the mid-2000s.

*$4.89B.