We can be so provincial, only thinking about our local needs and opportunities, but farm equipment makers are global with operations and factories around the world. Seldom, however do we think our dealers are also thinking globally, yet a release I got last week reminded me that global can be the way to go for a lot of businesses.
Titan Machinery announced it had entered into an agreement for VAIT D.o.o. to acquire a Case IH dealership in the Vojvodina of Serbia, and they'll close on the deal in the middle of this month. In the release, David Meyer, Titan's chairman and CEO says: "We are excited to expand our Eastern European operations into Serbia. This acquisition will enable us to further leverage our expanding dealership network in the region."
The new farm equipement dealership is close to existing operations in Bulgaria and Romania, and Meyer says the company is looking for more opportunities in the future. That dealership being acquired had reported sales of about $8.5 million and has been serving that market for 10 years. As Peter Christianson, Titan's president and chief operating officer, notes: "We look forward to working with the team and applying the Titan Machinery operating model to our newest international dealership. We continue to be pleased with our success in finding strong international CNH dealerships to join the Titan Machinery network abroad."
The idea makes sense, the major farm equipment makers are already global. And these large dealership businesses (Titan has 104 in the U.S. alone) have the wherewithal to provide much-needed support in those regions. And Titan isn't the only dealership chain with an international bent, RDO, the operation that has a large chain of Deere dealerships in the U.S. operates in Russia as Agro-Construction Technologies and serves that market for Deere as well.
So that local farm equipment dealership with a corporate owner may have links around the world. Anyone who thinks ag isn't a global business hasn't been paying attention.
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