CNH Industrial has struck a $2.1 billion deal to buy Raven Industries to bolster its agricultural equipment business, as the Italian-American vehicle maker prepares to spin off its truck, bus and engine operations. Raven (RAVN.O) shares rose by 50% in New York early Monday, lifting its market capitalization into line with the terms proposed by CNH Industrial, whose Milan-listed stock turned slightly positive after initially falling by as much as 5.6%.

CNH Industrial (CNHI.MI) is the world's second largest agricultural equipment maker after John Deere, operating under the New Holland, Case IH and Steyr brands. "Precision agriculture and autonomy are critical components of our strategy," CNH Industrial Chief Executive Scott Wine said of the acquisition of Raven, which also produces high-performance specialty films as well as aerospace and defense solutions.