Israel Matzav: John Deere thinks Israel is cotton pickin' good

John Deere thinks Israel is cotton pickin' good

John Deere, the huge farming equipment manufacturer, has purchased an Israeli manufacturer of cotton picker repair parts for $13 million.

Although the terms of the deal were not made public, Deere reportedly agreed to pay Kibbutz Beit HaShita $13 million for its agricultural equipment and machinery factory, BHC. The kibbutz is located several miles southwest of the Kinneret (Sea of Galilee).

BHC Manufacturing also supplies cotton picker row units for other equipment manufacturers and employs approximately 110 workers.

Demand for the machinery dropped during the recent world economic crisis, leaving an opening for Deere, the third-largest agricultural equipment manufacturer in the world.

Deere said the deal was conditioned on BHC’s “satisfactory completion of due diligence” in the second quarter of 2010. Company officials said they expect to complete the review process in the firm’s second fiscal quarter, which runs from February through April.

The acquisition would allow the U.S.-based heavy equipment maker to expand its range of products and services in the cotton picker industry.

Hmmm.

Israel Matzav: John Deere thinks Israel is cotton pickin' good