Go BottomNH purchases IH Case
 | Chris
Join Date: Posts: 1 
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1999-05-17 3898
I heard this morning that NH is purchasing IH/Case. Suppose to create a big competitor to Deere's construction division. NH=11 billon/yr. JD=14 billon/yr.Anyone hear other info??
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| Paul
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1999-05-17 3932
Yesfrom APMonday May 17, 5:42 pm Eastern TimeFarm Equipment Makers To MergeBy ROBERT IMRIE Associated Press WriterNew Holland, a large Dutch-based maker of farm equipment, will buy Wisconsin-based Case Corp. [NYSE:CSE - news] for $4.3 billion, creating a formidable new competitor to the industry leader John Deere Co.The deal comes as sales in the big-ticket farm industry continue to slump because of depressed commodity prices for farmers. Analysts said the companies will combine complementary product lines and bolster each other's geographic reach.``It is a good long-term strategic move for the companies, done at a time when they are both reeling from a weak farm economy,'' said Eli Lustgarten, managing director for Schroder and Co. in New York.Under the agreement, Case shareholders would receive $55 a share in cash from New Holland, the companies said.New Holland's parent company, Fiat, would retain a 71 percent controlling interest in the new venture.The company, whose name hasn't yet been determined, will be based at Case's Racine, Wisc. headquarters.``Any way you look at this, this deal makes sense,'' said Umberto Quadrino, chief executive officer of New Holland, which has big operations in England and Italy. ``We both needed to grow.''Jean-Pierre Rosso, the Case chairman, will head the new company.``We expect to realize $400 million to $500 million in cost savings within the next three to four years,'' he said. ``We think that maybe is just the start.''Lisa Shalett, a senior research analyst with Sanford Bernstein in New York, praised the merger.``The product lines are complementary,'' she said. ``If you are willing to look out two or three years, when they can benefit from cost-savings, financially, it is a great deal.''The two companies had 1998 combined sales of $7.6 billion for farm equipment, just slightly more than John Deere, she said.Case focuses on the larger horsepower tractors and combines for big farmers, while New Holland makes smaller tractors and hay and forage equipment.New Holland has a strong foothold in Europe, while Case is well established in Latin America, Eastern Europe and the former Soviet Union.The $55 a share price is probably at the low end of fair value for Case, Shalett said. ``Fiat is getting a good deal.''In 1998, Case earned $64 million, down sharply from $403 million a year earlier. Annual revenues were $6.15 billion in 1998, up from $5.8 billion a year earlier.New Holland earned $559.2 million last year on $5.7 billion in revenues. In 1997, the company earned $477 million on $5.8 billion in revenuesCase employs 17,700 workers and operates through 4,900 independent dealers and distributors. New Holland has 6,100 dealers and employs 21,300 workers.Dealers for both companies will continue selling one brand of machinery, Rosso said. ....
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| Jay
Join Date: Feb 2002 Posts: 43 huletts landing ny
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1999-05-17 3949
Was at the NH dealer today here in Indy and was told the same thing by the sales manager. They are going to be selling a lot of big stuff. He also said NH stock will be going up. He got that info from the national sales mgr. ....
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| Ben
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1999-05-17 3960
Jay, I wouldn't recommend taking stock advice from a "national sales manager." How does he know the stock price will go up? The big question I have is: Who is CAT going to buy? They need a dealer network before they'll make it big in ag!! ....
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| Chris
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1999-05-18 3968
IMHO, I'm not sure Ag is where anyone wants to be right now. I think the Case/NH deal was to better position them both for construction equipment, which CAT and Deere do well at now. But, I'm just a keyboard jocky. What do I know... ....
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