Raven (RAVN), Shareholders approve Deal with CNH Industrial

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Raven Industries, Inc. CNHI has announced an update to its agreement with CNH industrial N.V. CNHI , which was signed in June 2021. At a special meeting yesterday, the shareholders gave their approval for this transaction.

Raven shares fell 0.24% in the final trading session and closed at $57.60.

Raven, a company specializing in precision agriculture technology is located in Sioux Falls. There are three main divisions: Aerostar, Engineered Films, and Applied Technology. In the twelve months ending Jan 31, 2021, its revenues totalled $348.4 Million.

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The agreement was approved by nearly 99% of Raven’s stakeholder who voted during the special meeting. After receiving the necessary approvals from the Defense Counterintelligence and Security Agency and the Committee on Foreign Investment in the United States, the transaction should be completed in the fourth quarter 2021.

Below is a brief overview of the agreement.

CNH Industrial will buy Raven as part of the agreement. CNH Industrial will finance the transaction with cash. The deal was valued at $58 each share, or $2.1 million enterprise value.

Raven is expected to gain more capabilities in agriculture technology and increase its shareholders’ value through the transaction. After the transaction, CNH Industrial will conduct a strategic review on Aerostar’s and Engineered Films sections. Aerostar has been a pioneer in stratospheric platforms, but Engineered Films has a strong reputation in performance specialty film industry. This review will enhance the capabilities and shareholder value of each division.

Raven-CNH Industrial is expected to bring in revenues of $400 million by 2025. Expected annual earnings before interest and tax, depreciation, amortization, and taxes of $150 million

Zacks Price Performance, Zacks Rank and Estimates

Raven is currently a Zacks Rank 1 (Strong Buy) with a market cap of $2.1billion. The shares have risen 41.2% in the last three months compared to the industry growth of 7.3%.

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Zacks Consensus estimates for earnings are pegged at 82cs per share in fiscal 2022 (ending Jan 2022) and $1.21 in fiscal 2023, (ending Jan 2023). This indicates growth of 1.2% each over the 60-day-ago numbers. The earnings estimates for fiscal 2022’s third quarter (ending October 2021), are set at 21cs. This reflects a decline of 19.2% compared to the 60-day prior number.

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Publiated at Thu 16 Sep 2021, 19:17.38 (+0000).

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