CNH Industrial N.V. has completed its acquisition of ATI Inc., a global manufacturer of rubber track systems for high horsepower tractors and combine harvesters. This acquisition will provide customers of CNH Industrial’s global agricultural brands, Case IH and New Holland Agriculture, with access to factory-fit track technology. It extends the available range and enables tailoring of track choices based on their specific floatation, suspension and traction requirements.
ATI Track Systems’ track technology provides leading-edge suspension and high speed transport performance, unmatched durability and high productivity on rough terrain while minimizing compaction and maximizing traction in wet harvest conditions.
This acquisition includes ATI Track Systems’ engineering and manufacturing plant in Mt. Vernon, IN.
Tracks have become a more desirable option than tires in many applications due to the increased traction and flotation they offer. This is particularly beneficial to farmers who need to get into wet fields to plant or harvest crops, instead of waiting for them to dry which can negatively impact their productivity and profits.
CNH Industrial has a long-standing commercial supply agreement with ATI Track Systems dating back to 2012: where tracks are currently fitted to the New Holland T9 articulated tractor range. Following this acquisition, the track systems will be available on Case IH and New Holland combines produced at the company’s Grand Island, NE, facility starting in 2020, and will also be available for retrofit.
“The acquisition of ATI Track Systems forms part of CNH Industrial’s strategic acquisition program to drive consolidation in the agricultural segment,” states Hubertus Mühlhäuser, Chief Executive Officer, CNH Industrial. “This latest addition to the CNH Industrial agricultural portfolio will provide professional agribusinesses with multi-patented, industry-leading track technology, will further cement CNH Industrial’s track-leadership position.”
ATI Inc. was established in 1997 and initially specialized in rubber tracks used for seismic exploration on Alaska's North Slope, following which the company extended this technology to a range of agricultural tracks.
Considering the already announced acquisitions of AgDNA and K-Line (expected to be consummated by the end of the year), the aggregate consideration related to M&A activity in the Agricultural Segment for these three transactions will be approximately equal to $85 million.
*Editor's note: This news item was originally published on Nov. 5, and has been updated with new information.