South African farmers are set to benefit from the recent acquisition of local distributor Northmec by the brand’s parent company, CNH Industrial. The global agri-equipment brand is said to be strengthening its presence in Mzansi through the establishment of a fully-owned legal entity based in the country.
CNH Industrial has announced that it acquired four businesses of Capital Equipment Group, including Northmec as a Case IH distributor. The other divisions are CASE Construction Equipment distributor CSE, spare parts distributor NHSA, and Landboupart, a distributor of agricultural equipment spare parts and implements.
Confirming the news from Paradiso in Switzerland, CNH Industrial said these four divisions will, however, continue to do business under their established market identities.
Having done business in the country for more than a century, Northmec is South Africa’s most established agricultural equipment distributor.
It is the sole distributor of Case IH machinery, and with its offering of implements and other agricultural equipment, provides a full line for Mzansi farmers. By taking full operational management of its commercial distribution and aftermarket network, CNH Industrial will strengthen the relationship between the Case IH brand and its customers in South Africa and other southern African markets.
Investing in future growth
Case IH’s product offering, aftermarket sales and services will continue to be delivered at the high standard expected by customers, said Northmec’s new managing director, Jacques Taylor.
He explained how the brand aims to lead the way in contributing to the future growth of agriculture in the region by its commitment to quality through innovation, advanced technology, expertise in agricultural practices and professional support.
Previously, Taylor was the managing director of the sub-Saharan Africa division of John Deere. Prior to joining John Deere, Taylor worked for Standard Bank, and relocated to Lagos for three years to head the agricultural division at the bank’s Nigerian unit, Stanbic IBTC. He is also a part-time farmer.
Final approval was given by South Africa’s Competition Commission which led to the subsequent conclusion of the deal.
Newly appointed head of agriculture and construction for CNH Industrial South Africa and South Africa Customs Union, Federico Bellotto, said the brand aims to devote a strong focus to its business in this territory, while providing customers with the best all-round support and ensuring its product offering perfectly matches the specific requirements of local agriculture.
Bellotto, who was previously the business director for New Holland Agriculture, said this investment marks an evolution for CNH Industrial in South Africa.
The country is one of the most important markets for the company in Africa and the Middle East, as well as the wider southern Africa region. It is also testimony to the company’s confidence in agriculture’s potential in the region, which accounts for almost a third of the entire continent’s production.