Deere says to buy Lesco for $14.50 a share

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Mon Feb 19, 2007 1:00pm EST

NEW YORK Feb 19 (Reuters) - Farm equipment maker Deere & Co. on Monday said it agreed to acquire LESCO Inc. LSCO.O for $14.50 per share in cash, adding a leading supplier of fertilizer, seeds and chemicals to its landscape division. Moline-based Deere said LESCO would roughly double the number of store locations for its landscapes products. Cleveland-based LESCO operates 332 stores.

The transaction is expected to close in the second quarter of 2007, said Deere.

((Reporting by Dane Hamilton, Reuters messaging: dane.hamilton.reuters.com@reuters.net. 646 223 6161)) Keywords: DEERE LESCO/

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NEW YORK, Feb 19 (Reuters) - Farm equipment maker Deere & Co. (DE.N) on Monday said it agreed to acquire fertilizer and seeds maker LESCO Inc. LSCO.O for about $132.6 million, or $14.50 per share in cash, in a move to bolster its landscape division.

Moline, Illinois-based Deere said LESCO would roughly double the number of store locations for its landscape products.

LESCO, based in Cleveland, Ohio, operates 332 stores, selling products including seeds, chemicals and fertilizer for professional lawn maintenance firms, such as golf course operators.

The price is a premium to LESCO's closing share price of $10.43 on Nasdaq on Friday. Shares close down 5 cents that day.

LESCO has 9.15 million shares outstanding, according to Reuters data.

The transaction, pending approval of LESCO shareholders, is expected to close in the second quarter of 2007, said Deere.

Merrill Lynch MER.N advised Deere, while William Blair & Co. and Western Reserve Partners LLC advised LESCO.

((Reporting by Dane Hamilton; Editing by David Gregorio; Reuters messaging: dane.hamilton.reuters.com@reuters.net. 646 223 6161)) Keywords: DEERE LESCO/

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