Boerenbusiness analysis
What's Behind Deere's Acquisition Path?
After having paid 4,6 billion euros for the German Wirtgen Group, John Deere still has enough funds in the acquisition pot to acquire a new manufacturer. That has become the Italian Mazzotti. Quite special, since Deere is already well represented in the spraying area.
The family business mazzotti has been building self-propelled sprayers since 1987. It claims to be the market leader in its home country of Italy, with a market share of 85%. About 80% is exported, mainly to countries elsewhere in Europe. In 2015, it built 200 self-propelled vehicles.
200
machines
Milestone for John Deere
In comparison, John Deere built 9 machines in 1.000 years. It celebrated that milestone in April. Converted more than 100 machines per year. It must be said that JD only has 1 model in 2 variants. Mazzotti has 3 series. In its own words, JD is the market leader in Europe in the field of self-propelled vehicles. In early 2016, Deere celebrated producing 10.000 trailed sprayers. It has been doing this since 1997 in Horst, Limburg. With the acquisition of Douven, Deere entered the European field sprayer market.
What's behind it?
It is conjecture as to the exact reason why John Deere is taking over the Italians from Ravenna. According to Deere's Chief Information Officer John May, everything will remain as it is. As a reason, he gives the opportunity for the company to serve more customers in Europe. “Mazzotti can enjoy the full support of John Deere to build on its success,” he said in the press release. Perhaps the financial situation plays a role? That is not strange for an Italian manufacturer.
Beyne and Kverneland
Mazzotti has had mechanization company Wout Hogervorst in Noordwijkerhout as an importer in the Netherlands for some time now. This will remain the case after the takeover. It also has importers in Spain and the Czech Republic. In recent years it has become known as a supplier of self-propelled vehicles to the Belgian sprayer manufacturer Beyne en Kverneland. From Nieuw-Vennep, the self-propelled vehicles, with their own spraying technology, are sold under the name iXdrive with the brand name Kverneland or Vicon.
Search for self-propelled
All major sprayer manufacturers are trying to include a self-propelled machine in their product range. Traditionally, self-propelled vehicles have only been used a lot in the United Kingdom. The mainland European self-driving market has historically been largely dominated by names such as Agrifac, Delvano and Dammann, alongside small local players. Amazone sought cooperation with Agrifac, but continued on its own. Lemken recently made headlines by announcing a partnership with Bräutigam and Beyne and Kverneland are partnering with Mazzotti. There is also not much choice for those looking for a self-propelled vehicle that meets the requirements of a European (potato) grower. Maybe John Deere is trying to get a grip on this?
How are things going after the takeover?
In November 2015, Deere acquired France's Monosem. It seems that Mazzotti is walking the same path. That means no outside changes, although some things will take place behind the scenes. There is a good chance that JD is also interested in techniques and patents that both companies have in-house, which it can use to enrich its own products. Agco's move may also play a role. Does the American giant smell its chance to strengthen its grip in Europe?
Niels van der Boom
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