Deere To Sell Majority Stake In Landscape Biz To Clayton, Dubilier & Rice

(RTTNews) - Deere & Company (DE) on Monday agreed to sell a majority stake in its landscapes business to private equity firm Clayton, Dubilier & Rice LLC, in a carve-out transaction valued at $465 million.

Deere will initially retain a 40 percent stake in the John Deere Landscapes, which will become a new standalone company, and receive about $300 million in cash.

"This partial sale allows Deere an opportunity to remain as part of a successful landscapes distribution business," said James Field, president of Deere's Worldwide Agriculture & Turf Division. "At the same time, Deere will continue to increase its own strategic focus on the global growth businesses in agriculture and construction and the complementary businesses in turf and forestry. "

Deere's landscape business, which was formed in 2001, generates about $1 billion in revenues. The landscape business distributes wholesale irrigation, landscape lighting, nursery, and turf and maintenance supplies. John Deere Landscapes has more than 2,000 employees at approximately 400 locations in 41 states.

"The new company should benefit from a recovery in residential and commercial construction activity as well as through the meaningful value creation opportunities available to drive the business forward," said CD&R Partner Ken Giuriceo.

DE is currently trading at $83.85, up $0.30 or 0.36%, on the NYSE.