Breaking News: Jan. 2001, Deere Makes Acquisitions

RALEIGH, N.C. – John Deere announced its most aggressive effort to establish itself as a legitimate player in the commercial mower industry with the purchase of Great Dane Power Equipment, Sellersburg, Ind., from Dane Scag.

In a surprising move, Deere also announced the acquisition of McGinnis Farms, an Atlanta-Ga., based supplier of plant material, irrigation products and pesticides throughout the southern portion of the country. Additional details on this deal were not available at press time.

By acquiring Scag’s $23-million mower company, Deere added a lineup of innovative mowers to its offerings.

“The obvious answer to why we made this acquisition is that we think the Super Surfer mower is a very unique product that is on the verge of making a very strong showing in this market,” explained Greg Doherty, general manager of John Deere Turf Care.

The acquisition represents a big step for Deere in the ultra-competitive market for mid-size mowers. “We have increased our presence in this market in the last few years, and we’ve got some new products that we’ll be talking about later this year,” he commented. “We think we’re on the verge of being a real player in this market.”

Deere is going to use a dual-brand strategy to take the mowers to market. “We want to support the Great Dane brand,” Doherty noted. “That name has a lot of meaning and equity in the marketplace, and we want to continue building that equity. Over time, you’ll see some of the Great Dane products modified and “Deere-ized” so there will be some differentiation in the products and there are opportunities for both dealer networks.”

Scag, himself, will continue to work with the company, focusing his efforts in research and development. Doherty is confident that Scag and his creativity will benefit Deere for years to come. “It’s a real plus that we’ve got Dane Scag working with us to design products for the future,” he noted. “That should show everyone how serious we are about this market.”