Agreement to Sell the Material Handling & Port Solutions Business to
Konecranes to Proceed
WESTPORT, Conn.--(BUSINESS WIRE)--May 27, 2016--
Terex Corporation (NYSE:TEX) today announced discussions with Zoomlion
Heavy Industry Science and Technology Co. (“Zoomlion”) regarding the
purchase of Terex Corporation, either with or without the MHPS segment,
have been terminated. Terex also announced that the sale of its Material
Handling and Port Solutions business (“MHPS”) to Konecranes will
proceed. The sale of MHPS to Konecranes for approximately $1.3 billion
is subject to customary regulatory approvals and the approval of the
shareholders of Konecranes, and is expected to close in January 2017.
“The Board of Directors and Management of Terex worked diligently to
determine if an appropriate transaction with Zoomlion, beneficial to
Terex shareholders, was achievable,” commented David A. Sachs, Chairman
of the Board of Terex. “Unfortunately, after many months of discussions,
Zoomlion was unable to provide a fully financed, binding proposal for
the purchase of Terex with or without MHPS. This ends the prolonged
period of uncertainty that this process has brought to Terex and its
customers, team members and shareholders. The Board is confident in our
global management team and with Terex’s prospects for the future.”
“The sale of the MHPS business to Konecranes will now proceed,” said
John L. Garrison, Terex President and Chief Executive Officer. “This
transaction represents excellent value realization for our shareholders
and also provides certainty for our MHPS customers and team members. We
expect this sale to be accretive to Terex’s earnings per share. The
proceeds will significantly reduce Terex’s debt levels and improve our
balance sheet, providing us with the ability to buy back shares and
invest in our remaining businesses. As a 25% shareholder of Konecranes,
Terex will be able to share in the synergies and economic upside of the
combined MHPS and Konecranes businesses.”
Forward Looking Statements
This press release contains forward-looking information based on the
current expectations of Terex Corporation. Because forward-looking
statements involve risks and uncertainties, actual results could differ
materially. Such risks and uncertainties, many of which are beyond the
control of Terex, include those factors that are more specifically set
forth in the public filings of Terex with the Securities and Exchange
Commission. Actual events or the actual future results of Terex and
Konecranes may differ materially from any forward looking statement due
to those and other risks, uncertainties and significant factors. The
forward-looking statements speak only as of the date of this press
release.
Terex expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statement
included in this press release to reflect any changes in expectations
with regard thereto or any changes in events, conditions, or
circumstances on which any such statement is based.
About Terex
Terex Corporation is a lifting and material handling solutions company
reporting in five business segments: Aerial Work Platforms, Cranes,
Material Handling & Port Solutions, Materials Processing and
Construction. Terex manufactures a broad range of equipment for use in
various industries, including the construction, infrastructure,
manufacturing, shipping, transportation, refining, energy, utility,
quarrying and mining industries. Terex offers financial products and
services to assist in the acquisition of Terex equipment through Terex
Financial Services. Terex uses its website (www.terex.com)
and its Facebook page (www.facebook.com/TerexCorporation)
to make information available to its investors and the market.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160527005343/en/
Source: Terex Corporation
Terex Corporation
Tom Gelston, 203-222-5943
Vice President,
Investor Relations
thomas.gelston@terex.com