Terex to Form Joint Venture with Manitex International, Inc.
October 29 2014 - 3:29PM
Business Wire
Terex Corporation (NYSE:TEX) today announced that it has agreed
to sell 51% of A.S.V., Inc. (ASV) to Manitex International, Inc.
(Manitex). This will result in a joint venture in compact track
loaders and skid steers that is 51% owned by Manitex and 49% owned
by Terex. The transaction is expected to result in more than $125
million of cash received by Terex, including cash from a
recapitalization of ASV prior to closing and a significant amount
in tax benefits. Upon completion of the transaction, ASV will
continue to sell its compact track loaders and skid steers under
the Terex brand. The transaction is expected to be completed before
the end of 2014.
Terex Chairman and Chief Executive Office Ron DeFeo commented,
“The formation of this joint venture is a positive for both Terex
and ASV. Terex preserves its broad compact equipment product
offering and its participation in an expected housing recovery.
Manitex will augment ASV’s existing distribution channels, allowing
for faster growth of the ASV business.” Included in the transaction
is ASV’s Grand Rapids, MN manufacturing facility and certain assets
held at Terex’s Southaven, MS distribution center.
In a separate transaction, Terex will use a portion of the cash
it receives as a result of the ASV sale to acquire $12.5 million of
newly issued Manitex common shares and $7.5 million of convertible
debt securities. Commented Mr. DeFeo, “We have sold businesses to
Manitex and profitably owned their equity in the past. They are a
good aggregator and operator of machinery businesses, and we look
forward to extending our value creating relationship.”
In conjunction with Terex’s third quarter earnings call,
scheduled for 8:30 am EDT tomorrow, Thursday, October 30, 2014, Mr.
DeFeo will discuss the proposed transactions.
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 lifting and material handling solutions
company 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
Terex (NYSE:TEX)
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