Deere & Co. says it has agreed 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 strategic focus, we have concluded that the company’s resources are best invested in growing our core equipment businesses around the world,” says Samuel R. Allen, Deere & Co. CEO. “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 about $25 million in its fourth quarter results. The charge was not reflected in Deere’s fourth quarter earnings forecast of about $375 million that was announced August 18th.
John Deere Renewables included 36 completed projects in eight states with an operational capacity of 735 MW. The agreement includes the completed projects plus numerous others in development. Subject to regulatory approvals, Deere anticipates the transaction to close in the 2010 calendar year.
Deere & Co.