CNH Industrial Announces Exit from Russia

With headquarters in the Netherlands, CNH Industrial, an Italian-American company and owner of the New Holland and Case IH brands, has announced it has left Russia after it sold its business holdings there for $60M.

This follows the Company’s announcement in March 2022 that it was suspending supplies to the Russian market and added it would donate $500,000 to support Ukrainians and establish a global fund for employees to donate to. The company committed to match all contributions.

“CNH Industrial strongly condemns any and all acts of unprovoked violence and aggression, which have led to the current lamentable situation in Ukraine,” Scott Wine, CEO of CNH Industrial, said in a statement last year.

Notably, up until the final sale, CNH continued payment of approximately 200 employee salaries in Russia.

CNH Industrial operated a corporate office in the Moscow region through which it managed the import and distribution of its products in Russia, regional business activities and commercial financing. Its industrial footprint included manufacturing sites for agricultural equipment and implements and construction equipment, and a parts depot.

“We wish to acknowledge our former employees for their years of dedicated service,” added the company in a written statement.

The announcement did not disclose who the purchaser of the Russian business assets was.

In February, the Intrefax Group reported that CNH’s leasing and fac- toring subsidiaries in Russia, CNH Industrial Financial Services Russia LLC and CNH Industrial Capital Russia LLC, were acquired by Russian banker, Igor Kim’s Expocap LLC.

For the fiscal year ending 2021, the last full year of operations, the Russian operations generated revenue of approximately $380 million.

As of March 2023, thousands of companies have withdrawn from Russia with hundreds more restricting and/or scaling down their business activity in the country.

Currently CNH Global is controlled and majority owned by a multinational private equity firm Exor based in The Netherlands, which in turn is controlled by the Agnelli family with just over 26% of economic rights and 42.9% of voting rights as of April 2023.