Deere, Hagie In Joint Venture
By pdamon29 March 2016
Deere & Co. has entered into a joint venture with Hagie Manufacturing, a manufacturer of high-clearance sprayers. As part of the agreement, Deere will acquire a majority ownership of Hagie Manufacturing. Terms were not disclosed.
Equipment made by the joint venture will continue to carry the Hagie brand while sales and service for Hagie equipment will be integrated into Deere’s global distribution channel over the next 15 months. The sprayers will continue to be built in its current Clarion, Iowa, location, said Deere.
“Hagie Manufacturing is known for innovation and its strong customer understanding in high-clearance spraying equipment,” said John May, president, Agricultural Solutions and Chief Information Officer at Deere. “High-clearance spraying equipment is a new market for Deere. The expertise at Hagie allows John Deere to immediately serve customers who need precision solutions that extend their window for applying nutrients.”
May said the joint venture investment allows John Deere to provide a broader range of sprayer options and integrate Deere’s precision technology into the Hagie equipment to help customers reduce costs and improve yields.
“We have great products at Hagie that help producers be more profitable but we need a business model that helps us reach more customers,” said Alan Hagie, chief executive officer, Hagie Manufacturing. “This partnership with Deere allows our solutions to reach customers on a global scale and ensure they are supported with the world-class Deere dealer organization.”