WESTPORT, Conn., Aug 30, 2002 (BUSINESS WIRE) -- Terex Corporation (NYSE: TEX)
today announced that it has completed the acquisition of Demag Mobile Cranes
GmbH & Co KG, a leading manufacturer of mobile telescopic and lattice boom
cranes.
"We are pleased to welcome Demag to the Terex group," commented Ronald M. DeFeo,
Terex's Chairman and Chief Executive Officer. "Besides being financially
attractive, the Demag acquisition fills certain strategic needs within our Crane
group. Demag improves our position in the all-terrain crane market, a market
category that has seen growth over the past several years, and provides leading
market positions in the 300-ton to 1,600-ton lattice boom crane category. The
Demag acquisition not only strengthens the Terex franchise, which has become one
of the leaders in the construction and mining equipment sector, but also
positions us to compete as a leading worldwide global crane company."
Fil Filipov, President of Terex Cranes, will assume responsibility for Demag as
it becomes part of the Terex Cranes Group. "We are very excited about the
opportunity at Demag," commented Mr. Filipov. "Demag has a reputation in the
market place for its engineering, product innovation and excellent quality,
which we will look to leverage throughout the Terex Cranes Group. The addition
of Demag also enables us to offer our customers a full range of cranes to meet
their needs, including the larger and higher technology cranes where we have not
had a significant market presence. This acquisition also provides us with
substantial opportunities for cost savings, and we have currently targeted $20
million of cost savings through synergies, outsourcing of non-core activities,
streamlining of the organization and production processes, improvements in
purchasing and management of working capital, all without sacrificing product
support or other customer needs."
Mr. DeFeo concluded by stating, "We expect Demag to add approximately $360
million in pro forma annual revenues and be accretive by $0.20 to $0.30 per
share after planned cost reductions are implemented."
Terex Corporation is a diversified global manufacturer based in Westport,
Connecticut, with 2001 annual revenues in excess of $1.8 billion. Terex is
involved in a broad range of construction, infrastructure, recycling and
mining-related capital equipment under the brand names of Advance, American,
Amida, Atlas, Bartell, Bendini, Benford, Bid-Well, B.L. Pegson, Canica,
Cedarapids, Cifali, CMI, Coleman Engineering, Comedil, CPV, Demag, Fermec,
Finlay, Franna, Fuchs, Grayhound, Hi-Ranger, Italmacchine, Jaques, Johnson-Ross,
Koehring, Lectra Haul, Load King, Lorain, Marklift, Matbro, Morrison, Muller,
O&K, Payhauler, Peiner, Powerscreen, PPM, Re-Tech, RO, Royer, Schaeff,
Simplicity, Square Shooter, Telelect, Terex, and Unit Rig. More information on
Terex can be found at www.terex.com.
CONTACT: Terex Corporation, Westport
Kevin O'Reilly, 203/222-5943