Terex Agrees to Sell Truck Business to Volvo for $160 Million
December 09 2013 - 6:50AM
Business Wire
Terex Corporation (NYSE:TEX) today announced that it has agreed
to sell its truck business to Volvo Construction Equipment for cash
proceeds of approximately $160 million. The truck business
manufactures and sells off-highway rigid and articulated haul
trucks. Included in the transaction is the manufacturing facility
in Motherwell, Scotland. The sale, which is subject to government
regulatory approvals and other customary closing conditions, is
targeted to close in the first half of 2014.
“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,” said 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.”
Mr. DeFeo continued, “The sale of the Truck business reflects
our strategy to manage our portfolio of businesses and focus on
those businesses that provide the greatest returns for our
shareholders. We recently announced the initiation of quarterly
cash dividends to our shareholders and a share repurchase program
and the proceeds from this sale aid our efforts to improve our
financial efficiency and implement these programs.”
Commenting on the rationale of the deal Volvo CE’s president,
Pat Olney said: “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 earthmoving options for
customers involved in light mining applications at a time of
renewed confidence in the sector. The addition of TEL’s articulated
hauler range will enhance our position in this segment,
particularly in high-growth markets. We believe that the Motherwell
facility and its global team members, as well as the current
distribution partners, are valuable to the success of the business
in the future.”
Forward Looking Statements
This press release contains forward-looking information based on
the current expectations of Terex Corporation. Because
forward-looking statements involve risks and uncertainties, actual
results could differ materially. Such risks and uncertainties, many
of which are beyond the control of Terex, include those factors
that are more specifically set forth in the public filings of Terex
with the Securities and Exchange Commission. Actual events or the
actual future results of Terex may differ materially from any
forward looking statement due to those and other risks,
uncertainties and significant factors. The forward-looking
statements speak only as of the date of this press release. Terex
expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statement
included in this press release to reflect any changes in
expectations with regard thereto or any changes in events,
conditions, or circumstances on which any such statement is
based
About Terex
Terex Corporation is a diversified global manufacturer reporting
in five business segments: Aerial Work Platforms, Construction,
Cranes, Material Handling & Port Solutions and Materials
Processing. Terex manufactures a broad range of equipment for use
in various industries, including the construction, infrastructure,
quarrying, manufacturing, mining, shipping, transportation,
refining, energy and utility industries. Terex offers financial
products and services to assist in the acquisition of Terex
equipment through Terex Financial Services. Terex uses its website
(www.terex.com) and its Facebook page
(www.facebook.com/TerexCorporation) to make information available
to its investors and the market.
Terex CorporationTom Gelston, 203-222-5943Vice President,
Investor Relationsthomas.gelston@terex.com
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