CNH Industrial N.V. CNHI recently announced acquiring a minority stake in Bennamann Ltd. — an evolving agricultural technology company. This acquisition will result in CNH Industrial becoming Bennamann’s dedicated strategic agricultural technology partner worldwide.
Newquay-based Bennamann is committed to bringing in a clean energy revolution by unlocking the true potential of biomethane. The company develops and markets technology to reuse fugitive methane emissions from agricultural and other sectors. It uses state-of-the-art technology to convert this harmful greenhouse gas into liquid fugitive methane for distribution and use as a renewable biofuel, thus preventing it from entering into the atmosphere.
For agriculture, the company uses on-site renewable energy resources, along with animal waste, to supply clean energy needed for the farm, helping farmers to achieve energy independence from fossil fuels. Also, biogas and liquid biofuel not used on the farm are sold by Bennamann in various biogas markets, thus generating additional revenues for farmers.
Bennaman’s revolutionary and pioneering business model makes farming more sustainable in both environmental and economic terms. The company’s commercially-viable technology helps agribusinesses become economically stronger and greener, and also aids them to generate funding and technology to back restorative farming practices.
A Win-Win Deal
The acquisition is a win-win deal for both Bennamann and CNH Industrial.
CNH Industrial’s investment will help Bennamann fuel its growth by getting access to a wide span of manufacturing, supply chain and operational prowess. In fact, backing from a leading agricultural equipment manufacturer like CNH industrial marks the achievement of a historical milestone for the company.
The partnership also showcases CNH Industrial’s consistent dedication to investing in productivity-boosting sustainable technologies, which enhance the well-being of farmers. Furthermore, this acquisition fortifies the company’s commitment to renewable energy, which assists farmers to bring down agricultural emissions by using innovative and sustainable technologies, in order to bring welfare for customers and the society as a whole. Additionally, CNH Industrial is actively partnering with Bennamann on alternative fuels for agricultural machinery.
Both companies are thrilled to be working together. The synergies between them in terms of commitment to clean energy and reducing carbon emissions generated through agriculture is strongly evident, ensuring a long-standing partnership.
Moreover, this partnership is in sync with CNH Industrial’s strategy of investing in advanced agricultural technologies in a bid to fortify its product portfolio.
Based in the U.K., CNH Industrial is a global leader in the capital goods sector and manufacturer of agricultural equipment. Its products range from tractors to trucks and buses, along with powertrain solutions for off and on-road, and marine vehicles.
Last week, CNH Industrial also acquired a minority stake in Augmenta, an agricultural technology company which creates real-time, camera-based system that modifies pre-owned farming equipment and automates farming operations, like nitrogen and chemical applications. The partnership will provide its customers with augmented access to productivity enhancing automation technologies and groundbreaking agricultural innovations as well as significant sustainability benefits.
CNH industrial, peers of which include Toyota TM, Honda HMC and Daimler AG DDAIF , currently carries a Zacks Rank of 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, shares of the company have surged 171.6% in the past year, while the industry has rallied 45.3%.
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