John Deere to Acquire Majority Ownership in Kreisel Electric
John Deere (NYSE: DE) has agreed to acquire a majority stake in Kreisel Electric, a company specializing in advanced battery technology for e-mobility and stationary systems. This acquisition enhances Deere's capacity to integrate high-density battery solutions into its product lines and improve its sustainability goals. Kreisel's technology supports off-highway vehicles and aims to boost demand for electric propulsion systems. The deal is pending regulatory approval in Austria and is expected to close in approximately 60 days.
- Majority acquisition aligns with Deere's electrification and sustainability goals.
- Integration of Kreisel's technology enhances Deere's vehicle and powertrain designs.
- Access to Kreisel's innovative battery technology supports zero emissions objectives.
- Kreisel retains its brand and operational structure, supporting continuity and growth.
- Financial details of the acquisition are undisclosed, raising questions about financial impact.
- Regulatory approval in Austria is required before the deal can close.
-- Kreisel Electric produces innovative battery technology for e-mobility and stationary systems.
-- This investment will provide John Deere with optimal integration to efficiently design vehicles and powertrains around superior immersion-cooled, high-density battery technology.
-- Deere will leverage Kreisel's battery-buffered charging technology to build out infrastructure to support global customers.
-- The majority acquisition strongly aligns with Deere's electrification and sustainability goals.
MOLINE, Ill., Dec. 14, 2021 /PRNewswire/ -- Deere & Company (NYSE: DE) has signed a definitive agreement to acquire majority ownership in Kreisel Electric, Inc. ("Kreisel"), a battery technology provider based in Rainbach im Mühlkreis, Austria. Kreisel develops high-density, high-durability electric battery modules and packs. Additionally, Kreisel has developed a charging infrastructure platform (CHIMERO) that utilizes this patented battery technology.
Since 2014, Kreisel has been a leading innovator focused on the development of immersion-cooled electric battery modules and packs for high-performance and off-highway applications. The company has a differentiated battery technology and battery-buffered charging infrastructure offering and currently serves a global customer base across multiple end markets, including commercial vehicles, off-highway vehicles, marine, e-motorsports, and other high-performance applications.
John Deere sees demand growing for batteries as a sole- or hybrid-propulsion system for off-highway vehicles. Products in Deere's portfolio such as turf equipment, compact utility tractors, small tractors, compact construction, and some road building equipment could rely solely on batteries as a primary power source. Deere intends to continue to invest in and develop technologies to innovate, deliver value to customers, and work towards a future with zero emissions propulsion systems.
The majority investment in Kreisel Electric will allow Deere to optimally integrate vehicle and powertrain designs around high-density battery packs while leveraging Kreisel's charging technology to build out infrastructure required for customer adoption.
"Kreisel's battery technology can be applied across the broad portfolio of Deere products, and Kreisel's in-market experience will benefit Deere as we ramp up our battery-electric vehicle portfolio. Deere will provide the expertise, global footprint, and funding to enable Kreisel to continue its fast growth in core markets," said Pierre Guyot, Senior Vice President, John Deere Power Systems. "This is an opportunity to invest in a company with unique technology that's designed for the demanding conditions where Deere customers work.
"Furthermore, building an electrified portfolio is key to John Deere's sustainability goal of pursuing new technologies that reduce the environmental impact of new products and work toward zero emissions propulsion systems on equipment, while increasing our customers' efficiency and productivity."
Kreisel Electric will retain its employees, brand name, and trademark, and continue to operate from its current location in Austria to serve its growing customer base. The company was founded by brothers Johann, Markus, and Philipp Kreisel, and has approximately 160 full-time employees.
In a joint statement, Johann, Markus, and Philipp Kreisel said the Kreisel team looks forward to expanding its base business, leveraging the Deere channel to accelerate adoption of battery-electric vehicles and charging stations, and working with Deere's vehicle design teams on product advancements.
The transaction requires final regulatory approval in Austria, with closing expected to take place in approximately 60 days. Financial details are not being disclosed.
About Deere & Company
Deere & Company (www.JohnDeere.com) is a world leader in providing advanced products, technology and services for customers whose work is revolutionizing agriculture and construction — those who cultivate, harvest, transform, enrich and build upon the land to meet the world's increasing need for food, fuel, shelter and infrastructure.
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SOURCE Deere & Company
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