KUHN Group has announced the acquisition of the baler division of Kverneland Group, including its factory located at Geldrop, Netherlands. The facility at Geldrop specialises in the design and manufacture of fixed- and variable-chamber round balers, big square balers, bale wrappers, rotary drum mowers, tedder-rake combinations and maize choppers. Kuhn Group, based at Saverne, France, with a workforce of approximately 3,000, operates six manufacturing plants in France, USA and Brazil. In 2007, it recorder net sales of 565 million Euros, with 70% generated by exports.For the first nine months of 2008, Kuhn reported a sales increase in excess of 20%. Kuhn said the key reasons for the acquisition were that the addition of a wide range of balers, bale wrappers and drum mowers would ideally complement the company's current product offering, and it wouldbenefit from a highly qualified research/development and manufacturing facility in the field of baling.
The extended product range of Kuhn Group reinforces the company's strategic position in the hay and forage equipment business.The acquisition will enable Kuhn to continue its progression in the agricultural machinery sector. The acquisition is subject to the approval of the relevant competition authorities and advice by the employee representatives in Holland.The transaction is expected to be completed in the first quarter of 2009. The Geldrop products will be introduced immediately to the Kuhn product offering, but will continue to be sold by Kverneland for a transition period of up to two years. The Dutch-built balers are currently sold under Kverneland's Vicon brand, which will see its product offering substantially reduced by this move. The company will, however, still offer spreaders and sprayers, as well as its recently introduced range of Hedge/verge cutters. Kverneland is currently consolidating its brands in Europe and is moving to a position where the Accord, Taarup and Rau names are phased out and all the group's products carry the Keverneland or Vicon name.
