CNH Industrial signs agreement to acquire full control of Agriculture, Construction and Spare Parts commercial distribution network in Southern Africa

Rhea-AI Summary

CNH Industrial is planning to enhance its local presence by acquiring four divisions of Capital Equipment Group, previously owned by Invicta Holdings. These divisions include Northmec, CSE, NHSA, and Landboupart, which will be part of a fully-owned legal entity in South Africa. The acquisition, pending approval from the Competition Commission, aims to strengthen CNH Industrial's distribution network and market position in agriculture and construction equipment sectors across Southern Africa. This strategic move marks an important step in expanding the company's operational footprint in key markets.

Positive

• Acquisition of Northmec, CSE, NHSA, and Landboupart strengthens distribution network.
• Expansion into Southern Africa's agriculture and construction equipment sectors.
• Potential for increased aftermarket sales and services.

Negative

• None.

The Company is moving to strengthen its local presence with the planned purchase of four divisions of Capital Equipment Group (CEG), previously owned by Invicta Holdings Limited. These include Case IH distributor Northmec; CASE Construction Equipment distributor CSE; spare parts distributor NHSA; and Landboupart, a distributor of agricultural equipment spare parts and implements. The acquired divisions will form part of a fully-owned CNH Industrial legal entity based in South Africa.

LUGANO, Switzerland, July 20, 2020 (GLOBE NEWSWIRE) -- 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; and
• 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.

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CNH Industrial N.V. (NYSE: CNHI / MI: CNHI) is a global leader in the capital goods sector with established industrial experience, a wide range of products and a worldwide presence. Each of the individual brands belonging to the Company is a major international force in its specific industrial sector: Case IH, New Holland Agriculture and Steyr for tractors and agricultural machinery; Case and New Holland Construction for earth moving equipment; Iveco for commercial vehicles; Iveco Bus and Heuliez Bus for buses and coaches; Iveco Astra for quarry and construction vehicles; Magirus for firefighting vehicles; Iveco Defence Vehicles for defence and civil protection; and FPT Industrial for engines and transmissions. More information can be found on the corporate website: www.cnhindustrial.com

Media contacts:

Nan Nie                                                                                               
Corporate Communications Manager AMEA & ANZ        
Tel: +86 21 2082 2201   
                                   
Alessia Domanico        
Corporate Communications AMEA & ANZ
Tel: +39 331 694 6984   
E-mail: media.amea@cnhind.com

FAQ

What is the purpose of CNHI's acquisition of Capital Equipment Group divisions?

The acquisition aims to enhance CNH Industrial's local distribution and operational capabilities in Southern Africa's agriculture and construction sectors.

Which divisions is CNHI acquiring from Capital Equipment Group?

CNHI is acquiring Northmec, CSE, NHSA, and Landboupart from Capital Equipment Group.

When will the acquisition of CEG divisions be finalized?

The acquisition is subject to approval by South Africa's Competition Commission before finalization.

How will this acquisition impact CNHI's operations in South Africa?

The acquisition is expected to strengthen CNHI's operational management and distribution network, enhancing brand presence and customer ties.

What is the significance of this acquisition for CNHI?

This move is strategically important as South Africa is a key market for CNHI in Africa and the Middle East.