Kverneland bid success makes it tackle giant

1 May 1998

Kverneland bid success makes it tackle giant

By Ian Marshall

KVERNELANDs announcement that it is to buy the Greenland Group (Business, Apr 24), achieves the companys long-stated aims of becoming a full line distributor in both grassland equipment and soil cultivation products.

The acquisition gives Kverneland the PZ, Vicon, Rivierre Casalis and Deutz Fahr brand names to add to its port folio – and in doing so, the Kverneland Group becomes the worlds largest company in both the grassland machinery and soil cultivations equipment sectors. It is a move which will significantly strengthen the companys position in the major European and overseas markets.

Inevitably, there will be long-term rationalisation in manufacturing and distribution arrangements. One consequence of the buy-out is the phasing out of the Greenland name. Commenting on distribution arrangements, a spokesman for Kverneland insists: "No changes are foreseen in the near future. The Kverneland Group intends to sell through two dealer networks under the Kverneland and Vicon names."

Where products overlap – rakes and mowers – Kverneland products will continue to be sold under the Kverneland Taarup banner.

The purchase of Greenland also supplies Kverneland, with the Vicon HPC, immediate access to a rapidly developing technique of forage conservation. It also gives the group a presence in the sprayer and fertiliser spreader market, where it is looking to expand its interests.

These two areas have been earmarked by Kverneland as important growth sectors in which it will not only make further investment in product development and marketing but "make other acquisitions and alliances within these sectors".

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