CNH Industrial N.V. has entered an agreement to acquire ATI Inc., a global manufacturer of rubber track systems for high horsepower tractors and combine harvesters. This acquisition will provide customers of CNH Industrial's global agricultural brands, Case IH and New Holland Agriculture, with access to factory-fit track technology, extending the available range and enabling them to tailor their choice based on their specific floatation, suspension and traction requirements.
CNH says that ATI Track Systems' track technology provides excellent suspension and high-speed transport performance, durability and high productivity on rough terrain while minimizing compaction and maximizing traction in wet harvest conditions.
This acquisition includes ATI Track Systems' engineering and manufacturing plant in Mt. Vernon, Indiana, U.S.A..
CNH Industrial has a long standing commercial supply agreement with ATI Track Systems dating back to 2012: where tracks are currently fitted to the New Holland T9 articulated tractor range. Following this acquisition, the track systems will be available on Case IH and New Holland combines produced at the Company's Grand Island, Nebraska, U.S.A. facility starting in 2020, and will also be available for retrofit.
"The acquisition of ATI Track Systems forms part of CNH Industrial's strategic acquisition program to drive consolidation in the agricultural segment," stated Hubertus Mühlhäuser, Chief Executive Officer, CNH Industrial. "This latest addition to the CNH Industrial agricultural portfolio will provide professional agribusinesses with multi-patented, industry-leading track technology, will further cement CNH Industrial's track-leadership position."
Headquartered in Mount Vernon, Indiana, ATI Inc. was established in 1997 and initially specialized in rubber tracks used for seismic exploration on Alaska's North Slope, following which the company extended this technology to a range of agricultural tracks.
The closing of this transaction is subject to various customary conditions precedent. Considering the already announced acquisitions of AgDNA and K-Line (expected to be consummated by the end of the year), the aggregate consideration related to M&A activity in the Agricultural Segment for these three transactions will be approximately equal to $85 million.