Terex Announces Talks with Zoomlion Terminated
May 27 2016 - 8:23AM
Business Wire
Agreement to Sell the Material Handling
& Port Solutions Business to Konecranes to Proceed
Terex Corporation (NYSE:TEX) today announced discussions with
Zoomlion Heavy Industry Science and Technology Co. (“Zoomlion”)
regarding the purchase of Terex Corporation, either with or without
the MHPS segment, have been terminated. Terex also announced that
the sale of its Material Handling and Port Solutions business
(“MHPS”) to Konecranes will proceed. The sale of MHPS to Konecranes
for approximately $1.3 billion is subject to customary regulatory
approvals and the approval of the shareholders of Konecranes, and
is expected to close in January 2017.
“The Board of Directors and Management of Terex worked
diligently to determine if an appropriate transaction with
Zoomlion, beneficial to Terex shareholders, was achievable,”
commented David A. Sachs, Chairman of the Board of Terex.
“Unfortunately, after many months of discussions, Zoomlion was
unable to provide a fully financed, binding proposal for the
purchase of Terex with or without MHPS. This ends the prolonged
period of uncertainty that this process has brought to Terex and
its customers, team members and shareholders. The Board is
confident in our global management team and with Terex’s prospects
for the future.”
“The sale of the MHPS business to Konecranes will now proceed,”
said John L. Garrison, Terex President and Chief Executive Officer.
“This transaction represents excellent value realization for our
shareholders and also provides certainty for our MHPS customers and
team members. We expect this sale to be accretive to Terex’s
earnings per share. The proceeds will significantly reduce Terex’s
debt levels and improve our balance sheet, providing us with the
ability to buy back shares and invest in our remaining businesses.
As a 25% shareholder of Konecranes, Terex will be able to share in
the synergies and economic upside of the combined MHPS and
Konecranes businesses.”
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 and Konecranes 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 lifting and material
handling solutions company reporting in five business segments:
Aerial Work Platforms, Cranes, Material Handling & Port
Solutions, Materials Processing and Construction. Terex
manufactures a broad range of equipment for use in various
industries, including the construction, infrastructure,
manufacturing, shipping, transportation, refining, energy, utility,
quarrying and mining 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20160527005343/en/
Terex CorporationTom Gelston, 203-222-5943Vice President,
Investor Relationsthomas.gelston@terex.com
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