TITN anticipates additional long-term pre-tax margin expansion opportunities by leveraging its existing infrastructure, optimizing existing operations, and growing the Parts & Service business. The deal equates to approximately $274 million in revenues, 43 cents in earnings per share, and $19.5 million in EBITDA. The transaction, subject to customary closing conditions, is expected to close next month. The company generated pre-tax margins of 4.2%. Heartland’s business is well diversified with a strong parts & service business that generated around 30% of its revenues in 2021. Heartland Ag Systems generated revenues of $213.9 million and EBITDA of $15.3 million in 2021. The company has an agriculture and related commercial application equipment manufacturing plant and headquarters in Hutchinson, MN. This is supported by 12 retail stores, six of which are within Titan Machinery’s existing agriculture footprint. Heartland has been in operation for over five decades and currently has exclusive distribution agreements across 17 midwestern and northwestern states. CNH Industrial is a leading manufacturer and supplier of agricultural and construction equipment, which includes the Case IH Agriculture, New Holland Agriculture, Case Construction and New Holland Construction brands. It has been an authorized dealer of CNH Industrial CNHI since its inception in 1980. Titan Machinery and its subsidiaries own and operate a network of full-service agricultural and construction equipment stores in the United States and Europe. TITN anticipates immediate revenue synergies in the first full fiscal year of ownership, estimated to be approximately $60 million of run-rate sales, which will translate to approximately 13 cents of earnings per share. It will have a complete distribution model covering both farmers and commercial applicators. The buyout enhances TITN’s product portfolio by providing access to a full line of Case IH application equipment, including self-propelled sprayers and fertilizer applicators. The deal valued at $110 million is expected to be settled in cash. TITN recently entered into an agreement to acquire Heartland Ag Systems - the largest distributor of Case IH application equipment in North America. As one company it will enable us to have unmatched service and support for our customers.Titan Machinery Inc. With Case IH, we have the best brand in the commercial application equipment business,” while Arnie Sinclair (General Manager of AG Systems) adds, “We are extremely excited to be combining two companies whose primary focus is addressing the needs of our customers and business partners. The combined entity will be called Heartland AG Systems.īill Oltean (President of Heartland Ag) says, “Our strategic plan focuses on growth of our business across the grain belt for the benefit of our vendors, customers and employees. The new organization has 9 locations and covers Nebraska, Kansas, Iowa, Missouri, North Dakota, South Dakota, Minnesota, Wisconsin and part of Colorado, Wyoming, and Michigan. Combined, they become Case IH’s largest North American Commercial Application Equipment Distributor. Heartland Ag (Ames, Iowa) and AG Systems (Hutchinson, Minn.) have announced a merger of the two organizations effective March 1, 2019.
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