Terex has completed the sale of its Material Handling and Port Solutions business to Konecranes.
Terex Corporation has completed the sale of its Material Handling and Port Solutions business (MHPS) to Konecranes for USD595 million and EUR200 million (USD211million) in cash and 19.6 million newly issued class B shares, representing a 25% interest in Konecranes.
"We believe that the Konecranes-MHPS combination represents compelling industrial logic that will deliver significant value to Konecranes customers, team members and shareholders, including Terex," says John L. Garrison, Terex president and CEO.
"The sale of our MHPS business is a major milestone on our journey to become a more focused, high- performance enterprise. We are committed to delivering improved profitability and return on capital across Terex as we implement our strategy of focus, simplify, and execute to win. Also, we will move forward over the coming weeks with our planned debt reduction, significantly reducing our interest expense and leverage as we enter 2017."
The final transaction consideration is subject to post-closing adjustments for cash, debt, working capital, MHPS actual 2016 EBITDA and the closing of the sale of the Stahl CraneSystems business.
Meanwhile, the German Bundeskartellamt has approved the Stahl divestment.
On 7 December 2016, Konecranes signed an agreement with Columbus McKinnon Corporation regarding the divestment as part of its MHPS purchase.
Konecranes and Columbus McKinnon intend to close it on or about January 31, 2017.