Deere & Co. officials on Wednesday announced they have reached a definitive agreement to sell its irrigation operations to FIMI Opportunity Funds, the leading private equity firm in Israel.
After being involved in the production of irrigation products for seven years, Deere announced in September that it planned to seek strategic options for the irrigation operations known as John Deere Water.
The closing on the sale is expected in the second quarter of the 2014 calendar year. Terms of the sale are not being made public; BofA Merrill Lynch was the exclusive financial advisor to Deere for the strategic review.
While Deere is exiting the John Deere Water operations, the company noted that -- as a part of its John Deere FarmSight strategy -- it will continue to develop and offer products and services to help customers improve the overall performance of their farming operations, including John Deere Field Connect, in-field moisture and climate sensing technology.
John Deere Water is one of the world's largest full-line drip irrigation manufacturers, with significant distribution in North and South America, Asia, Europe and Africa. FIMI Opportunity Fund is Israel's largest and leading private equity fund, with more than $2 billion in invested capital.