Volvo Construction Equipment to Buy Hauler Business from Terex
December 09 2013 - 7:15AM
Dow Jones News
Swedish truck and construction equipment maker Volvo AB
(VOLV-B.SK) said Monday it has agreed to acquire the off-highway
hauler business of the Terex Corporation (TEX) for about $160
million on a cash and debt free basis.
MAIN FACTS:
-The acquisition is intended to improve Volvo Construction
Equipment's penetration in the core earthmoving segment and extend
its presence in light mining, Volvo said.
-The deal includes the main production facility in Motherwell,
Scotland and two product ranges that offer both rigid and
articulated haulers.
-It also includes the distribution of haulers in the U.S. as
well as a 25.2% holding in Inner Mongolia North Hauler Joint Stock
Co (NHL), which manufactures and sells rigid haulers under the
Terex brand in China.
-In 2012, the businesses in the acquisition, excluding NHL, had
net sales of approximately $370 million and an operating income of
approximately $33 million.
-In the first nine months of 2013 net sales amounted to
approximately $172 million and operating income was approximately
$5.5 million.
-The transaction is expected to be finalized during the second
quarter of 2014. For implementation, approval is required from
relevant authorities.
-The acquisition will increase the Volvo Group Industrial
Operation's net financial debt by SEK 1 billionillion.
-At 1144 GMT, shares were up 0.1% at SEK83.60.
Write to Niclas Rolander at niclas.rolander@wsj.com; Twitter:
@WSJNordics
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