Volvo Construction Equipment has announced plans to acquire Terex Corporation’s truck business for approximately US$160 million on a cash and debt free basis. The deal would include Terex’s manufacturing facility in Motherwell, Scotland, as well as the off-highway rigid articulated trucks product range and articulated haul trucks line.
The range of rigid haulers comprises five models with payloads of 32 – 91 t. These will enable Volvo CE to expand its offerings in the light mining sector, complimenting the company’s current activities in construction, oil and gas, aggregates and quarrying, as well as road building. The deal will see Volvo CE add three models of articulated hauler to its present range, with payloads of 25 – 38 t.
The purchase also involves the distribution of haulers in the US and a 2.5% stake in Inner Mongolia North Hauler Joint Stock Co., which produces rigid haulers under the Terex brand in China.
The deal is subject to regulatory approvals from the relevant authorities. If approved, the transaction is likely to be finalised in 2Q14.
“The truck business has been an important part of our Company for more than three decades and continues to produce world class products with dedicated and talented employees,” stated Ron DeFeo, Terex Chairman and Chief Executive Officer. “However, trucks no longer fit within our changing portfolio of lifting and material handling businesses. I am confident that the truck business will benefit by joining a company sharing similar competencies and offering complementary products and services. We are pleased to have entered into this agreement with Volvo, which represents a strong strategic buyer for the business who values our distribution network and team members.”
“This is a strategic acquisition that offers Volvo CE considerable scope for growth. The addition of a well-respected range of rigid haulers extends the earth moving options for customers involved in light mining applications,” said Volvo CE’s President, Pat Olney.
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/europe-cis/09122013/volvo_ce_to_acquire_terex_hauler_business_494/