Business Roundup: Why Deere is buying Wirtgen; Flaska JCB expands into Denver; Volvo CE and SkillsUSA; construction spending falls

Flaska JCB expands beyond Phoenix with Denver dealership

Phoenix-based Flaska JCB has added a second JCB-dedicated location in Denver, Colorado, which will provide coverage for 12 counties across the state.

“We have had an excellent business relationship with JCB over the last three years at our Phoenix location and are thrilled to continue to work together and promote the JCB brand in the Denver region,” says Bob Cannady, general manager for both locations.

“The Denver marketplace has been growing significantly in the last five years, creating a notable demand for JCB parts and service in the area,” he adds. “We’re excited to fulfill that need and continue to develop our relationship with JCB.”

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Volvo CE and dealers partner with SkillsUSA on Penn. youth heavy equipment competition

Volvo Construction Equipment, along with its dealer Highway Equipment & Supply and customer Allan Myers, recently participated in the SkillsUSA Pennsylvania State Heavy Equipment Competition.

The event aims to encourage youth to pursue jobs in manufacturing and tested “top technical students” from across the state in operating equipment in nine categories

“As a leader in the construction equipment industry, it is very important for Volvo CE to support future generations of skilled workers,” says Chuck Wood, vice president, Human Resource Management and Administration for Volvo CE. “Competitions like this not only help students get excited about a future in our industry, but also help bridge the current skills gap.”

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Construction spending falls 1.4% in April

An increase in single-family home construction spending was not enough to offset a decline in nonresidential spending as total U.S. construction spending fell 1.4 percent in April to $1.2 trillion.

Despite the monthly decline, total spending remains 6.7 percent above the April 2016 figure, according to preliminary data from the Commerce Department.

Private residential spending, which tracks the homebuilding market and includes spending on home improvements, fell 0.7 percent to $517 billion. Spending on new multi-family homes fell 0.2 percent to $65 billion while new single-family home construction rose 0.8 percent to $262 billion.

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Deere to acquire German road equipment maker Wirtgen Group for $5.2 billion

In a surprise announcement during the wee hours of Thursday morning, Deere & Company announced a blockbuster deal to acquire German equipment manufacturer Wirtgen Group.

The two companies have signed a definitive agreement on the all-cash deal which will see Deere purchase the road equipment maker for €4.357 billion. When Wirtgen’s debts and other considerations are factored in, the total purchase price jumps to €4.6 billion or ($5.2 billion).

Deere says it plans to fund the acquisition through a combination of cash and debt. The purchase is subject to regulatory approval but Deere expects the transaction to close before the end of 2017.

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Why Deere is buying Wirtgen: Trust, a willing exit and an eye on infrastructure construction

Deere & Company’s planned purchase of Wirtgen Group is the culmination of more than a decade of relationship building, the alignment of recent strong financial performances by Deere and a decision by brothers Stefan and Jürgen Wirtgen to exit the family business.

Deere Chairman and CEO Sam Allen says the company identified Wirtgen as an attractive strategic fit for its construction business more than a decade ago.

“While head of the C&F (Construction & Forestry) division in the mid-2000s, I met with the Wirtgen family to discuss the possibility of pursuing strategic opportunities such as this one, and we stayed in close touch ever since,” Allen explains.

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