Back in 2017, John Deere announced that it would acquire the Wirtgen Group, an international company with a focus on producing road construction equipment. Since then, it hasn’t looked back – the acquisition has propelled Deere to the front of the pack in terms of the equipment used in the road construction process.
“This transaction enhances our global distribution options in construction equipment and enhances our capabilities in emerging markets,” said Max Guinn, President of Deere’s Worldwide Construction & Forestry Division, at the time of the deal.
Expanding a Global Footprint
Deere effectively expanded its global footprint with the acquisition of Wirtgen. Headquartered in Germany, the company has five premium brands that span across several sectors, including milling, processing, mixing, and paving. At the time of the acquisition, Wirtgen also had about 8,000 employees and sold its products in more than 100 different countries.
“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,” said Samuel R. Allen, Deere & Company Chairman and Chief Executive Officer.
Selling within Wirtgen
John Deere’s acquisition of Wirtgen has also opened the door for new exhibition opportunities. Back in 2019, the company showcased several pieces of construction equipment, including motor graders, at Wirtgen’s booth at the bauma trade fair event.
“Our strong relationship with the Wirtgen Group and their experience with bauma is allowing us to introduce John Deere construction equipment to a broader set of global customers,” said David Thorne, senior vice president, sales & marketing, Worldwide Construction & Forestry, back in 2019. “We believe they will be impressed with the quality and innovation we build into each one of our machines. These customers will also benefit from the size and scale of our product lineup inclusive of the very successful motor grader line we are now bringing into select European markets.”
Expanding in the European Market
Through its acquisition of Wirtgen, John Deere has also been able to grow in the European market. For instance, it introduced two G-Series Motor Graders to the European market via Wirtgen back in 2019. The 622GP and 672GP were developed to cater to the growing demand for earthmoving equipment from Deere.
“Wirtgen’s stellar reputation for supporting customers, and large distribution network, allows us to serve these new markets well offering them powerful motor grader solutions in two priority countries,” said Thorne, in 2019.