WESTPORT, Connecticut, USA -- Terex Corporation will sell its truck-mounted forklift businesses to Partek Cargotec, a subsidiary of Partek Corporation of Finland, for US$144 million cash.
Terex will sell the truck-mounted forklift units Moffett, acquired in mid-1999, and Princeton/Kooi, acquired from Allegheny Talledyne late last year. The deal, subject to US regulatory approvals, is expected to close in the third quarter.
Terex is retaining its Terex Lifting division, which manufactures telescopic mobile cranes, lattice boom cranes, tower cranes, aerial work platforms, utility aerial devices, telescopic material handlers, truck-mounted lift trucks, truck-mounted cranes and related products.
"This transaction creates strategic and financial benefits for Terex and Partek," Terex chief executive officer Ronald M DeFeo said. "Moffett and Princeton/Kooi, which operate primarily in the building materials industry, have customers and distribution that have little or no overlap with the current range of Terex Lifting products."
Following the sale of Moffett and Princeton/Kooi, Terex Lifting now trades under the brand names Terex, Lorain, PPM, P&H, Franna, Marklift, Koehring, Bendini, Simon, RO, Telelect, Square Shooter, Holland Lift, American, Italmacchine, Peiner, Comedil and Matbro.
Partek's Cargotec unit, which does not manufacture truck-mounted forklifts, currently distributes Moffet products in North America and France.
"This transaction came about as a result of our ongoing portfolio reassessment and our willingness to sell assets that we believe have increased significantly in value under Terex's stewardship," Mr DeFeo said.
The acquisition gives Partek a leading position is the rapidly growing truck-mounted equipment industry in North America and Europe, further strengthening the company's global position in load-handling equipment.
Partek's main products are Hiab loader cranes and Multilift demountable load-handling systems. Partek Cargotec's net 1999 sales were 420 million Euro.
"Partek Cargotec has marketed, sold and serviced the Moffett truck-mounted forklifts in the fast-growing US market since 1989," president Olof Elenius said. "During the last five years, this successful concept has also been applied in Mexico, Chile and France."
With capacities ranging from 1500kg to 3000kg, truck-mounted forklifts have gained rapid acceptance in the logistics, transportation and distribution industries during the past 10 years.
"With this acquisition, we will be the clear market leader in a business that has been referred to by customers as a "distribution revolution"," Mr Elenius said.
NEWS : Full Story 