WATERTOWN, SD, January 22, 2002 – Terex-Telelect, Inc. today announced that it has acquired Pacific Utility Equipment Co., a distributor of Telelect products. Pacific Utility, based in Portland, Oregon, performs final assembly, distribution, equipment rental and after-market service for the utility, telecommunications, and municipal markets. From nine locations, Pacific Utility provides services to the following states: Oregon, Washington, Alaska, California, Nevada, Utah, Idaho, Wyoming, Montana, Arizona, and Hawaii.
“We are very excited about the Pacific Utility acquisition,” commented Ernie Verebelyi, Group President-Terex Americas. “Pacific Utility has done a fine job developing the West Coast market for Telelect products, but with the consolidation underway within the utility industry we believe that this acquisition will give Telelect the opportunity to address some strategic needs in our distribution channel. It provides Telelect more direct access to many customers who are looking for turnkey solutions and a life cycle value proposition for their fleets. It also gives Telelect more control over the entire manufacturing process, which will enable it to better manage total supply chain costs.”
“With nine independent facilities we have an opportunity to streamline office and administrative operations and reduce the overall cost structure of the company,” added Jim Toedter, President - Terex Utility Division, who will be responsible for the Pacific Utility operations. “We are in the process of finalizing our restructuring plan for the business and will begin implementation immediately. We believe with a lower cost structure and working directly with Telelect, Pacific Utility will be a more efficient and competitive company and we expect to grow market share in the important West Coast territory. It will also give us the ability to provide a one-stop alternative that many of the larger utilities are looking for.”
Terex-Telelect is a subsidiary of Terex Corporation. Terex Corporation is a diversified global manufacturer based in Westport, Connecticut, with 2000 annual revenues in excess of $2 billion. Terex is involved in a broad range of construction, infrastructure, recycling and mining-related capital equipment under the brand names of American, Amida, Atlas, B.L. Pegson, Bartell, Bendini, Benford, Bid-Well, CMI, Canica-Jaques, Cedarapids, Cifali, Coleman, Comedil, Fermec, Finlay, Franna, Fuchs, Grayhound, Jaques, Italmacchine, Koehring, Load King, Lorain, Marklift, Matbro, Morrison, Muller, O&K, P&H, PPM, Payhauler, Peiner, Powerscreen, RO, Schaeff, Simplicity, Square Shooter, Telelect, Terex, and Unit Rig. More information on Terex can be found at www.terex.com.
Safe Harbor Statement
The above contains forward-looking information based on Terex's current expectations. Because forward-looking statements involve risks and uncertainties, actual results could differ materially. Such risks and uncertainties, many of which are beyond Terex's control, include among others, the sensitivity of construction and mining activity to interest rates, government spending and downward economic cycles 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; the effect of changes in laws and regulations, including environmental laws and regulations; the effect of debt and restrictive covenants; and other factors, risks, 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.
CONTACT: Terex Corporation
Kevin O'Reilly
Vice President, Investor Relations
203/222-5943