CNH Industrial has reached an agreement to acquire Raven Industries for US$2.1 billion, in a move to enhance CNH’s position in the areas of autonomous and precision agriculture technology.

The deal would see the parent company of Case and New Holland acquire 100 per cent of the capital stock in Raven for US$58 per share. It’s expected to close in the fourth quarter of 2021, pending shareholder and regulatory approvals.

“Precision agriculture and autonomy are critical components of our strategy to help our agricultural customers reach the next level of productivity and to unlock the true potential of their operations,” says Scott Wine, CEO of CNH Industrial, in a June 21 news release.

“Raven has been a pioneer in precision agriculture for decades, and their deep product experience, customer driven software expertise and engineering acumen offer a significant boost to our capabilities. This acquisition emphasizes our commitment to enhance our precision farming portfolio and aligns with our digital transformation strategy,” adds Wine. “The combination of Raven’s technologies and CNH Industrial’s strong current and new product portfolio will provide our customers with novel, connected technologies, allowing them to be more productive and efficient.”

Wine says Raven’s headquarters in Sioux Falls, South Dakota,  will “continue to be a true center of excellence” within CNH.

“Our relationship with CNH Industrial has expanded over decades, and we have a deep respect for one another and a shared commitment to transform agriculture practices across the world,” says Dan Rykhus, president & CEO for Raven Industries. “We look forward to CNH Industrial leveraging the Raven talent and culture, as well as the Sioux Falls community, as part of their vision and future success.”

Two newly-named OMNiPower units operating at Haggerty Creek’s farm in Ontario.

In addition to its precision agriculture business, Raven also has business divisions focused on specialty films and liners, and aerospace — going back to Raven’s founding in 1956 as a maker of high-altitude research balloons for the U.S. government’s space program. CNH says it believes the engineered films and aerospace segments “represent attractive independent businesses” and that it plans to review each business to “best position them for future success and maximize shareholder value.”

Raven’s autonomous agriculture business has expanded over the last few years with the acquisition of Saskatchewan-based DOT Technology Corp. and its autonomous platform in 2020 and purchase of the AutoCart aftermarket driverless grain cart system from Smart Ag in 2019. Last month, Raven announced the launch of OMNi as its new brand for its autonomous agriculture business.

2 thoughts on “CNH to buy Raven Industries for US$2.1 billion

  1. I’m pretty sure that is a picture of my farm in the Qu’Appelle Valley north of Broadview, Sask., not of Haggery Creek.

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