New Holland Agriculture is expanding to include ploughs, cultivators, seed drills and a range of grass harvesting and feeding products, which it is buying from Kongskilde Industries.
New Holland parent CNH Industrial has agreed to buy the product lines along with the factories that produce them and associated brand names – including Kongskilde, Overum and JF – from the Danish farmer co-operative DLG.
Managers say they will use the global strength of New Holland and the expertise of the Kongskilde Grass and Soil organisation and dealer network to develop the brand and its business.
The deal, which is subject to the usual closing conditions and approvals, does not include Kongskilde’s grain handling and industrial products conveying businesses.
DLG bought Kongskilde Industries in 2007 and rescued fellow Danish manufacturer JF-Stoll in 2011. But the combined group has failed to make consistent headway in the face of challenging market conditions over the past few years.
The farmer-owned organisation put Kongskilde Industries up for sale in February 2015.
The acquisition will realise New Holland’s ambition to broaden its product range, having been outbid by Kubota for the Kverneland Group in 2012.