NEW YORK (TheStreet) -- Deere & Co. (DE) - Get Deere & Company Report stock closed up by 1.17% to $80.50 on Tuesday, after the agriculture and construction equipment company agreed to acquire a majority stake in Hagie Manufacturing, a high-clearance sprayer manufacturer, for an undisclosed amount.
The acquisition is part of a joint venture between the companies that will produce and sell equipment under the Hagie brand.
"High-clearance spraying equipment is a new market for Deere," John May, Deere's chief information officer and president of agricultural solutions, said in a statement. "The expertise at Hagie allows John Deere to immediately serve customers who need precision solutions that extend their window for applying nutrients."
Deere will integrate sales and services for the Hagie equipment into its global distribution channel over the next 15 months.
"It is notable that Hagie basically put itself on sale, because they had a financial advisor involved," S&P Global Market Intelligence analyst Jim Corridore told Reuters. "The fact that they were looking to get an investor involved, they probably needed the funds given how bad the sector has been and for how long it has been bad."
Separately, Deere has a "buy" rating and a letter grade of B at TheStreet Ratings because of respectable return on equity and better-than-average revenue.
You can view the full analysis from the report here: DE
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.