Deere Reaches Agreement for Sale of Wind Energy Business
Deere & Company announced that it has signed a definitive agreement to sell John Deere Renewables, LLC, its wind energy business, to Exelon Generation Company, LLC, a wholly-owned subsidiary of Exelon Corp..
"As Deere sharpens its own strategic focus, we have concluded that the company’s resources are best invested in growing our core equipment businesses around the world," said Samuel R. Allen, Deere & Company Chairman and Chief Executive Officer. "We have chosen to place the wind portfolio with Exelon in part due to its demonstrated leadership in the energy industry."
Deere said the $900 million sale, including earn-out provisions, will result in an after-tax charge of approximately $25 million in its fourth quarter results. The charge was not reflected in Deere’s fourth quarter earnings forecast of approximately $375 million that was announced August 18th.
John Deere Renewables includes 36 completed projects in eight states with an operational capacity of 735MW. The definitive agreement includes the completed projects plus numerous others in development.
Subject to regulatory approvals, Deere anticipates the transaction to close within the 2010 calendar year.