Oct. 28 (Bloomberg) -- Clayton Dubilier & Rice LLC agreed to buy a majority stake in Deere & Co.’s landscaping business in a transaction valued at $465 million, betting on a revival of property construction.
CD&R will buy a 60 percent stake in John Deere Landscapes, which will become a standalone company, according to a statement today from New York-based CD&R. Deere will receive $300 million in cash as part of the transaction, Moline, Illinois-based Deere said in a separate statement.
“The new company should benefit from a recovery in residential and commercial construction activity as well as through the meaningful value-creation opportunities,” Ken Giuriceo, a partner at CD&R, said in the statement.
CD&R, run by Donald Gogel, has completed deals valued about $90 billion since its founding as a leveraged buyout firm in 1978. Deere started its landscape business in 2001 to supply turf, irrigation, lighting and other materials for outdoor construction. John Deere Landscapes has more than $1 billion in annual revenue, according to CD&R.
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