Deere & Company acquires Wirtgen Group for €4.357 billion
Deere Group has recently announced that it has acquired German company Wirtgen Group for over €4 billion. The all-cash deal encompasses Wirtgen’s debts, alongside five premium brands under its umbrella, which will help the company expand and strengthen its operations throughout Europe.
The acquisition will also support the diversification of the company’s services. Wirtgen Group’s brands encompass spanning, milling, processing, mixing, paving, compaction and rehabilitation, complimenting Deere's existing construction equipment offering.
Samuel R. Allen, Deere & Company Chairman and Chief Executive Officer, said: "The acquisition of the Wirtgen Group aligns with our long-term strategy to expand in both of John Deere's global growth businesses of agriculture and construction.
"Wirtgen's superb reputation, strong customer relationships and demonstrated financial performance are attractive as we expand the reach of John Deere construction equipment to more customers, markets, and geographies."
Max Guinn, President of Deere's Worldwide Construction & Forestry Division, said, "This transaction enhances our global distribution options in construction equipment and enhances our capabilities in emerging markets. Spending on road construction and transportation projects has grown at a faster rate than the overall construction industry and tends to be less cyclical. There is recognition globally that infrastructure improvements must be a priority and roads and highways are among the most critical in need of repair and replacement."
Stefan Wirtgen, Managing Director at Wirtgen, said, "The Wirtgen Group has a legacy of technology and innovation with market-leading products and a strong focus on the customer. As we looked to the future, we specifically chose Deere as the buyer because of our long-held respect for the organization and our full confidence that Deere is dedicated to the ongoing success of the Wirtgen Group and our employees worldwide."
Jürgen Wirtgen, Managing Director at Wirtgen, added, "Our company's strength and success comes from dedicated employees who are focused on helping customers succeed in the road construction industry. We believe this transaction allows the company to be successful well into the future - independent of our family ownership."
Established in 1837, Deere has continually transformed its services, products and business model to cater to modern needs within the construction sector. the acquisition will ensure the company continues to grow and deliver world class services for the foreseeable future.
SafeAI attracts $21m funding as SmartMix AI tool launches
SafeAI is driving the transformation of the mining and construction industries through connected, autonomous sites. With chronic labour shortages, unsafe working conditions and frequent project delays, these industries are in a unique position to benefit from autonomy.
Unlike on-road applications of the technology, autonomous heavy equipment operates in controlled environments, which means companies can create smarter, safer, more productive project sites today that create meaningful, near-term impact.
“We are at a tipping point for autonomous heavy equipment,” said Bibhrajit Halder, founder and CEO at SafeAI. “We’ve proven that autonomy makes work sites significantly safer and more productive; now, we are on the cusp of mass adoption. Together with our valued partners, customers and investors, we’re poised to deploy autonomy in off-road industries like construction and mining, at scale, to rethink the way heavy industry operates.”
Heavy industry is a large, growing global market, ripe for disruption. The construction equipment market alone is valued at $140 billion, and expected to increase to $175 billion by 2025; construction-related spending accounts for a staggering 13% of global GDP, or $11.5 trillion.
But there remains significant room for growth; in construction alone, higher productivity could create an estimated $1.6 trillion in additional value. With just 25% of the infrastructure needed by 2050 in existence today, autonomy can bridge this productivity gap with greater efficiency and 24/7 operations. SafeAI is at the forefront of this transformation.
“There’s a tremendous amount of excitement in the autonomy space today; but it’s clear the biggest opportunity for this technology is off-road,” said Mark Blackwell, General Partner at Builders VC. “With its industry-leading autonomous software, scalable retrofit approach and partner ecosystem, SafeAI is uniquely poised to capitalize on this opportunity. We’re proud to support the company in its next chapter of growth as demand for autonomous heavy equipment continues to skyrocket.”
New investors LTC, DG Ventures, MACA and Vimson Group, and existing investors Autotech Ventures, Brick and Mortar Ventures, Embark Ventures, Monta Vista Capital and Obayashi Corporation, also participated in the round. The funding comes on the heels of a year of rapid growth for SafeAI, including new partnerships with Obayashi, Goodyear and Macnica, and expansion into Australia’s booming mining market.
A pilot program with Obayashi Corporation last November saw a Caterpillar 725 articulated dump truck autonomously complete a vital on-site function and carry out load-haul-dump cycles.
Giatec debuts SmartMix AI tool
Giatec has debuted what it claims is the world's first concrete AI tool for producers, SmartMix. The web-based AI tool allows producers to optimise concrete ingredient proportions, reduce cement usage, and predict the performance of their mixes while still meeting project specifications.
Giatec believes this tool will lower Greenhouse Gas emissions resulting from concrete production by 400 million tons annually, the equivalent of taking 110 million cars off the road.
SmartMix builds on Giatec's first AI software program Roxi, which has collected millions of data points from the company's SmartRock wireless concrete sensors across 8,000 projects and 80 countries.
Giatec's head of research and development, Andrew Fahim, said the new technologies are going to pave the path forward for the industry to meet increasing infrastructure demands.