Deere to Sell Wind Energy Business to Exelon for $900 Million
Exelon Generation Company, a wholly owned subsidiary of Exelon Corp, will buy John Deere Renewables in a deal expected to close by the end of 2010, Deere & Company said in a statement.
"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," CEO Samuel Allen said.
The sale will result in an after-tax charge of approximately $25 million in Deere's fourth-quarter results. This was not reflected in Deere's fourth quarter earnings forecast of $375 million.
John Deere Renewables includes 36 completed projects in eight states. These projects have an operational capacity of 735 megawatts.