Terex will sell its Demag Mobile Cranes business
Terex Corporation has announced that it has agreed to sell its Demag Mobile Cranes business to Tadano Ltd. for an enterprise value of approximately USD215 million.
The Demag Mobile Cranes business manufactures and sells all-terrain cranes and large crawler cranes.
Included in the transaction are the manufacturing facilities in Zweibrucken, Germany and multiple sales and service locations. The sale, which is subject to government regulatory approvals and other customary closing conditions, is targeted to close in mid-2019.
"The Demag Mobile Cranes business has been part of our company for almost two decades and produces world-class products," says John L. Garrison, Terex chairman and chief executive officer. "The dedicated Demag Mobile Cranes team members have made significant contributions to Terex and to the crane industry.
"The sale is based on strong industrial logic, as the Demag Mobile Cranes business will become part of a global crane company with complementary products and capabilities. We are pleased to have entered into this agreement with Tadano, a strategic buyer who values the Demag Mobile Cranes brand, technology, distribution network and team members."
Commenting on the rationale of the deal, Koichi Tadano, Tadano president and chief executive officer, says: "This is a strategic acquisition that offers Tadano considerable scope for growth. The addition of the well-respected Demag brand of all-terrain cranes and large crawler cranes range extends our product lines and options for customers. The addition of the Demag-branded mobile crane product lines will enhance our global position in this segment. We believe that the Zweibrucken facilities and its global team members, as well as the current distribution partners, are valuable to the future success of the business."
Garrison has also confirmed that in addition to selling the Demag Mobile Cranes business, Terex will halt North American mobile crane product lines manufacturing in its Oklahoma City facility.
"These changes will simplify our Oklahoma City operation, which will continue to produce telehandlers and re-manufactured units for our Aerial Work Platforms segment and various products for our Materials Processing segment," he says, adding that Terex will continue to sell parts, and offer service and support to customers.
Terex will also continue to manufacture Terex Rough Terrain Cranes for the global market in Crespellano, Italy, Terex tower cranes in Fontanafredda, Italy, and Terex pick and carry cranes in Brisbane, Australia.
"These are strong businesses that will continue to be an important part of Terex," Garrison stresses.
Terex has shed a number of non-core business units since its abortive attempt to merge with Konecranes in 2016