WESTPORT, Conn.--(BUSINESS WIRE)--Jan. 3, 2001--Terex Corporation
(NYSE: TEX) announced today that it has acquired Fermec Holdings
Limited, a leading European manufacturer of loader backhoes based in
the UK. Fermec was sold by CNH as a condition for the European
Commission to approve the Case-New Holland merger.
"This acquisition is an excellent fit with Terex's strategy of
diversifying both the products and geographic range of our customer
offerings," said Ronald M. DeFeo, Terex's Chairman and Chief Executive
Officer. "With approximately $80 million in revenues, this acquisition
gives us the opportunity to implement our low cost operating model in
a new product line. The Fermec loader backhoe product line has a long
history and reputation for quality. Furthermore, the Fermec product
line is sold to many of the same rental and construction customers as
other Terex equipment in Europe."
Ernie Verebelyi, President of Terex Earthmoving added, "Similar to
other small to medium-sized construction lines, loader backhoes are
increasingly being sold both through traditional channels of
distribution as well as through rental fleets. This evolution in
distribution channels requires a simpler and lower cost product
design. The Fermec brand provides an excellent platform from which to
develop a cost-effective line under Terex ownership that represents a
compelling value to these customers."
"The acquisition of Fermec provides Terex with the opportunity to
expand our presence not only in Europe, but also in North America,"
said Colin Robertson, Managing Director of Terex Construction. "We
expect to generate significant cost reductions as we implement our
100-day plan and integrate Fermec within the Terex group of
companies."
Safe Harbor Statement
The above contains forward-looking information based on the
Company's current expectations. Because forward-looking statements
involve risks and uncertainties, actual results could differ
materially. In particular, market conditions for Terex products are
variable, and there can be no assurance that market conditions will
develop as anticipated. These risks and uncertainties, many of which
are beyond Terex's control, include, among others: the sensitivity of
construction and mining activity to interest rates and oil prices;
government and construction spending and general economic conditions;
the success of the integration of acquired businesses; the retention
of key management; foreign currency fluctuations; pricing, product
initiatives, and other actions taken by competitors; consolidation of
customer base; commodity pricing; the effect of changes in laws and
regulations; the continuing use of net operating loss carryovers; the
effect of debt and restrictive covenants; and other factors, risks and
uncertainties more specifically set forth in Terex's public filings
with the SEC. The forward-looking statements herein speak only as of
the date of this release. Terex expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any
forward-looking statement included in this release to reflect any
changes in Terex's expectations with regard thereto or any changes in
events, conditions, or circumstances on which any such statement is
based.
Terex Corporation is a diversified global manufacturer based in
Westport, Connecticut, with expected 2000 revenues in excess of $2
billion. Terex is involved in a broad range of construction,
infrastructure and mining-related capital equipment operating in two
segments -- Terex Earthmoving and Terex Lifting. Terex Earthmoving
manufactures and sells heavy-duty off-road trucks and high-capacity
surface mining trucks under the brand names of Terex, Unit Rig and
Payhauler, as well as large hydraulic mining shovels under the brand
name O&K. Terex entered the infrastructure building business in 1999
with the acquisitions of Powerscreen and Cedarapids. Terex Lifting
manufactures and sells telescopic mobile cranes, lattice boom cranes,
tower cranes, aerial work platforms, utility aerial devices,
telescopic material handlers, truck mounted cranes, and related
products, 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.
CONTACT: |
Terex Corporation |
---|
|
Jack Lascar, 203/222-5943 |
---|
|
Vice President |
---|
|
---|
|
---|