CNH INDUSTRIAL SIGNS AGREEMENT TO ACQUIRE FULL CONTROL OF AGRICULTURE, CONSTRUCTION AND SPARE PARTS COMMERCIAL DISTRIBUTION
Lugano, July 20, 2020
CNH Industrial announces its intention, subject to clearance from South Africa’s Competition Commission, to expand its direct presence in Southern Africa’s agriculture and construction equipment sectors. Through this agreement, the Company, via a fully-owned legal entity based in South Africa, is seeking to consolidate its direct distribution network with the acquisition of four divisions from CEG – a business unit of Humulani Marketing Pty Ltd, an Invicta Holdings Limited (JSE: IVT) company. Once approved, this transaction will mark an evolution for CNH Industrial in the Republic of South Africa, one of the most important markets for the Company in Africa and the Middle East, as well as the wider southern Africa area.
By taking full operational management of its commercial distribution and aftermarket network, CNH Industrial aims to further develop its Case IH and CASE Construction Equipment brands’ presence together with aftermarket sales and services in South Africa and other Southern African markets, strengthening its position and ties with its customer base. This model is already in place for the Company’s agriculture equipment brand New Holland Agriculture as well as its commercial and specialty vehicles business via its IVECO, IVECO ASTRA and IVECO BUS brands.
The business divisions included in the planned acquisition are:
- Northmec: South Africa’s most established agricultural equipment distributor and the sole distributor of Case IH equipment and implements;
- CSE: a well-established equipment distributor operating for more than 50 years in the market and the sole distributor of CASE tractor loader backhoes and skid steer loaders;
- NHSA: a spare parts distributor in Southern Africa mainly focused on agriculture;
- Landboupart: a distributor of spare parts and implements.
In anticipation of final approval by South Africa’s Competition Commission and the subsequent conclusion of the deal, the parties have entered into a transitional period for the business, which sees CEG remain in control of operations
“The passion and drive that Sylvain put into the increasing success of the Bus Business Unit will serve us well in the new role, ensuring that FPT Industrial will continue to successfully overcome the future challenges in the powertrain space,” added Gerrit Marx.