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CNH Industrial N.V. CNHI recently entered into an agreement to purchase 90% of privately-owned Italian company, Sampierana S.p.A., and acquire full control of the company over four years following the transaction’s conclusion.
The deal is worth 101.8 million euros. The transaction, expected to conclude in the fourth quarter of 2021, will be funded by CNH Industrial through available cash on hand.
Headquartered in San Piero in Bagno, Sampierana specializes in the development, manufacturing and commercialization of earthmoving machines, undercarriages and spare parts. Born as a family business in 1950, today the company represents a truly bespoke technology, offering a wide range of products constantly evolving to satisfy every customer in a global market. Thanks to its decades of experience and skills, the company is now a manufacturer of special machines, customized for every need and possessing the ability to satisfy a global market.
Sampierana also produces mini and midi excavators, and special undercarriages, under the brand name Eurocomach. Owing to its robust dealer network, Eurocomach is a highly reputable brand in the world. Sampierana’s product portfolio has recorded an excellent year-over-year performance and the company is acknowledged for its reliability, quality and innovative technology.
Both companies are highly optimistic about the buyout. This acquisition will enable CNH Industrial’s Construction Equipment business to amalgamate Eurocomach mini and midi excavators, Sampierana undercarriages and spare parts into its current product portfolio, thereby enhancing its product offerings. Sampierana’s wide product portfolio, excellent customization capacity, and existing electric power prototypes will perfectly complement CNH Industrial’s customer-centric and sustainable approach, and significantly boost the company’s in-house product and technology offerings.
Popular in the construction sector for its line of Eurocomach mini and midi excavators, and for special undercarriage, Sampierana’s unprecedented portfolio strengthens CNH Industrial’s presence in key market segments, thereby providing its dealers and customers greater access to the best-selling products supported by its brand, distribution, and manufacturing expertise. Together, both companies will create a stronger business for CNH Industrial’s employees, dealer network, and customers, enabling them to shape the future of the construction equipment industry.
The latest buyout also confirms CNH Industrial’s commitment to invest in and augment its construction equipment business, capturing a niche in the industry-leading mini and midi excavator segment. This takeover will boost the Italian-American vehicle maker’s construction business, allowing the segment to attain high profitability — marking an impressive achievement for the company.
For Sampierana, teaming up with CNH Industrial is equally beneficial. In collaboration with CNH Industrial, the company will continue its growth trajectory, while preserving its brands and commercial network. The buyout will also help Sampierana capitalize on all the benefits that a large industrial shareholder can provide.
The takeover is considered revolutionary as it showcases CNH Industrial’s continued dedication to invest in companies, which will fortify its foothold worldwide.
CNH Industrial considers strategic acquisitions crucial in its quest to grow profitably. The latest deal will help unlock new acquisition opportunities for CNH Industrial, providing it the ability to further expand its business.
Meanwhile, CNH Industrial plans to complete the spin-off of its low margin-generating Iveco truck and bus units early next year, along with the company’s FPT engine division, in a bid to enhance asset values and streamline businesses. The split business will be separately listed as an entity called On-Highway.
CNH Industrial, peers of which include Volkswagen (VWAGY), PACCAR PCAR and Daimler AG DDAIF, currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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