Deere & Co., Moline, Ill., has signed a definitive agreement to sell John Deere Renewables, its wind energy business, to Exelon Generation Co., a wholly-owned subsidiary of Exelon Corp., Chicago.

“As Deere sharpens its own strategic focus, we have concluded that the company's resources are best invested in growing our core equipment businesses around the world,” said Samuel Allen, Deere chairman and CEO. “We have chosen to place the wind portfolio with Exelon in part due to its demonstrated leadership in the energy industry.”

Deere said the $900 million sale, including earn-out provisions, will result in an after-tax charge of about $25 million in its fourth quarter results. The charge was not reflected in Deere’s fourth-quarter earnings forecast of about $375 million that was announced Aug. 18.

John Deere Renewables includes 36 completed projects in eight states with an operational capacity of 735 MW. The definitive agreement announced today includes the completed projects plus numerous others in development. Subject to regulatory approvals, Deere anticipates the transaction to close within the 2010 calendar year.