Freedonia Analyst Weighs in on Deere’s Acquisition of Wirtgen Group

In December 2017, Deere purchased Germany’s Wirtgen Group, a $3 billion manufacturer of heavy construction equipment. Freedonia Group analyst Gleb Mytko discusses the implications: “Deere’s purchase of Wirtgen Group is significant for a number of reasons.

With this acquisition, Deere will become one of the world’s top five manufacturers of construction machinery. The company will also add road building equipment to its product portfolio, complementing its existing construction equipment offering.”

The purchase will allow Deere to strengthen its position in a number of important emerging markets around the world and expand its global distribution network as well. The addition of Wirtgen adds factories for Deere in Germany, Brazil, China, and India.

Wirtgen is a leading manufacturer of high-end road construction equipment. Road building has outperformed other segments of the construction industry because of major infrastructure projects around the world, adding to the appeal of the Wirtgen Group. Wirtgen Group’s product portfolio includes mixers, pavers, compaction machines, cold milling machines, and other road construction equipment. These products are sold around the world under the WIRTGEN, VÖGELE, HAMM, KLEEMANN, and BENNINGHOVEN brand names.

The study, Global Construction Machinery, 6th Edition, written by Mytko, forecasts construction machinery to increase 9.6% per year through 2021 to $250 billion.

More information regarding the study can be found here: https://www.freedoniagroup.com/industry-study/global-construction-machinery-market-by-product-6th-edition-3539.htm

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