Deere expands sugarcane business through acquisition of Brazilian company

In this Monday, Aug. 31, 2015 photo, John Deere equipment is on display at the Farm Progress Show in Decatur, Ill. (AP Photo/Seth Perlman)
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MOLINE, Ill. (KCRG) - A major Midwest farm equipment manufacturer announced a planned purchase of a Brazilian company that specializes in parts for sugarcane harvesters, according to the company.

Deere & Company, based in Moline, Illinois, signed the agreement to purchase Unimil, which is currently a privately-held provider of sugarcane harvester parts in Piracicaba, Sao Paulo, Brazil.

Financial details of the deal were not released. The purchase will need to be approved by government regulators before being finalized.

"The decision to acquire this company in the aftermarket parts business emphasizes our commitment to customers,” Cory Reed, president of Deere’s Worldwide Agriculture and Turf Division in the Americas, said, in a statement. “Unimil has earned the confidence of customers in the sugarcane parts business by providing excellent service and products.”

The company said that the proposed purchase will bolster Deere's offerings to the sugarcane industry. It recently started production on a new harvester that it claims will lower the overall cost of producing sugarcane.

Unimil has 430 employees and will continue to operate under that brand name. Deere already has equipment production facilities in Brazil.

Deere operates factories in several eastern Iowa towns, including Davenport, Dubuque, Ottumwa, and Waterloo.