CNH Industrial N.V. (CNHI), a premier global manufacturer in the capital goods sector, recently augmented its presence in the U.S. with the completion of the acquisition of Miller-St. Nazianz, Inc. for an undisclosed amount. Moving forward, the Miller products will form an integral part of the New Holland Agriculture portfolio of CNH Industrial.
Based in St. Nazianz, WI, Miller-St. Nazianz manufactures agricultural machines such as front mount boom sprayers, mechanical drive sprayers, chassis, and hay and forage baggers. Founded in 1899, it was formerly known as John Miller Supply Co. and changed its name to Miller-St. Nazianz, Inc. in Oct 1988.
CNH Industrial’s Holland brand and Miller had a long-serving business tie-up for over four years for manufacturing and distributing agricultural products. With Miller in its kitty, CNH Industrial will now be able to boost its crop production sales by leveraging its broad distributor network.
The company has not revealed the source of funding the transaction. As of Sep 30, 2014, CNH Industrial had an available liquidity of $7.9 billion, including $2.5 billion in undrawn committed facilities. The company has also obtained a new revolving credit facility with a borrowing capacity of €1.75 billion to facilitate its working capital requirements. The new credit facility will replace an existing credit facility worth €2.0 billion that was scheduled to mature in Feb 2016.
CNH Industrial produces agricultural and construction equipment like tractors, combines, excavators and wheel loaders; commercial vehicles like trucks and buses; specialty vehicles like firefighting and civil protection vehicles; and a broad portfolio of powertrain applications. With 62 manufacturing plants, 48 research and development centers and a workforce of more than 71,000 people, CNH Industrial is present in 190 countries across the globe.
CNH Industrial currently holds a Zacks Rank #4 (Sell). Other stocks in the industry that look promising include Meritor, Inc. (MTOR), The Goodyear Tire & Rubber Co. (GT) and Gentherm Inc. (THRM). Each of these stocks sport a Zacks Rank #2 (Buy).
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