Deere sells wind energy business
Moline, Ill.-based Deere & Co. has signed an agreement to sell John Deere Renewables, its wind energy business, to Exelon Generation Co., a wholly owned subsidiary of Exelon Corp. Deere expects the transaction will close in 2010.
John Deere Renewables includes 36 completed projects in eight states with an operational capacity of 735 megawatts. The agreement includes the completed projects plus others in development.
"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 & Co. chairman and 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.