Ahead of the Bell: Deere/Lesco |
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Tue, 20 Feb 2007 14:47
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NEW YORK (AP) - Farming equipment maker Deere & Co. beefed up its lawn care business over the holiday weekend with the purchase of a small retailer catering to large, regional landscapers.Lesco Inc. will represent a tiny fraction of Deere's business. The Cleveland-based company, which sells turf-care products like fertilizer, seeds and pesticides, is expected to post $566 million in sales in 2006. Wall Street expects Deere to post more than $22 billion in sales this year.Still, Deere hopes that by buying Lesco's network of 332 stores, it can gain a stronger foothold in the $7.2 billion landscaping market. Deere agreed to pay $135 million, or $14.50 per share, for Lesco, representing a 39 percent premium to the stock's Friday closing price of $10.43.Moline, Ill.-based Deere said by adding Lesco to its 287-branch landscaping business, the company will add new products and expand its customer base.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Deere buys Cleveland lawn company 