CNH Industrial to Acquire 90% Stake in Sampierana

CNH Industrial (CNHI) has agreed to acquire 90% interest in Sampierana, a provider of earthmoving machines, undercarriages and spare parts. The deal is expected to close in the fourth quarter of 2021.

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CNH Industrial engages in designing, production and sales of agricultural equipment and commercial vehicles.

As per the terms of the deal, CNH Industrial will obtain 100% control of Sampierana over four years following the closing of the transaction. Also, the purchase price has been fixed at €101.8 million, which is expected to be funded with available cash in hand.

The company plans to combine Eurocomach mini and midi excavators, Sampierana undercarriages and spare parts into its current product portfolio alongside those of its existing third-party OEM partners. (See CNH Industrial stock charts on TipRanks)

The CEO of CNH Industrial, Scott Wine, said, “This latest strategic acquisition will further accelerate the profitable growth of our construction equipment business. Sampierana’s exceptional portfolio solidifies our presence in critical market segments and provides our dealers and customers access to industry-leading products backed by our brand, distribution, and manufacturing experience.”

On August 12, Kepler Capital analyst Thomas Besson maintained a Hold rating on the stock with a price target of $16 (4.8% downside potential). Besson expects the company to post earnings per share of $0.51 for the third quarter of 2021.

The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 2 Buys and 3 Holds. The average CNH Industrial price target of $18.81 implies 11.9% upside potential.

According to TipRanks’ Smart Score rating system, CNH Industrial gets a 6 out of 10, which indicates that the stock is likely to perform in line with market averages.