WESTPORT, Conn., Dec 20, 2009 (BUSINESS WIRE) -- Terex Corporation (NYSE: TEX) today announced that it has signed a
definitive agreement to sell its mining business to Bucyrus
International Inc. (NASDAQ: BUCY), for $1.3 billion in cash. The
products to be divested by Terex in the transaction include hydraulic
mining excavators, electric drive mining trucks, track and rotary
blasthole drills, and the highwall miner, as well as the related parts
and aftermarket service businesses, including the company-owned
distribution locations. The transaction, which is subject to customary
regulatory approvals, is expected to close in the first quarter of 2010.
"This transaction accelerates the transformation of Terex Corporation as
we move from a Construction and Mining Equipment Company to a Machinery
and Industrial Products business," said Ronald M. DeFeo, Terex Chairman
and Chief Executive Officer. "Going forward, we will focus on products
and services where we can maintain and build superior customer
propositions with high returns on capital for our owners. The current
environment plus this transaction provide an excellent opportunity to
create value. We plan to execute the changes needed to make this happen."
Mr. DeFeo emphasized "The sale of Mining to Bucyrus is good for
customers, team members and shareholders. It is a classic proposition
that strengthens the mining business for its customers and team members.
For Terex, the attractive cash offer provides us excellent financial
flexibility, as our cash balance will substantially equal our
outstanding indebtedness. The approximately $1 billion of after-tax
proceeds will allow Terex to invest in its current, high
return-on-capital businesses, or to look to add new, well positioned
niche manufacturers with strong market presence to the Company's
portfolio.
Mr. DeFeo continued, "Mining is a highly capital intensive business. It
would take us years to build the infrastructure to service and support
new equipment sales in many of the key mining markets around the world
where Bucyrus already has significant presence. We are confident that
both Companies' stakeholders will benefit from the transaction, with our
mining customers being the ultimate beneficiaries. The journey to make
this a great business will accelerate under the leadership of Bucyrus,
which has a historically strong presence in surface mining with its rope
shovel and dragline products."
Goldman, Sachs & Co. acted as financial advisor to Terex on this
transaction. Bryan Cave LLP acted as counsel to Terex on this
transaction.
Terex will host a conference call with presentation to review the sale
of the mining business on December 21, 2009 at 9:00 a.m. EST. Ronald M.
DeFeo, Chairman and Chief Executive Officer, and other members of the
Terex Senior Management Team will be available to answer questions
following a short presentation.
To access the call, dial (877) 726-6603 at least 10 minutes before the
call is scheduled to begin. International participants should dial (706)
634-5517.
A simultaneous webcast of this call, including the accompanying
presentation, will be available on the Company's website, www.terex.com.
To listen to the call, select "Investor Relations" in the "About Terex"
section on the home page and then click on the webcast microphone link.
Participants are encouraged to access the call 10 minutes prior to the
starting time.
A replay will be available shortly after the live call and can be
accessed until December 28, 2010 at 12:00 a.m. EST. To access the
telephone replay, please dial 800-642-1687 (International 706-645-9291)
and enter conference id #48372486. To access the web replay of the call,
go to the Investor Relations section of the Company's website at www.terex.com.
The call will also be archived on the Company's website under "Audio
Archives" in the "Investor Relations" section of the website.
Terex Corporation is a diversified global manufacturer with 2008 net
sales of $9.9 billion. Terex operates in four business segments: Terex
Aerial Work Platforms, Terex Construction, Terex Cranes, and Terex
Materials Processing & Mining. Terex manufactures a broad range of
equipment for use in various industries, including the construction,
infrastructure, quarrying, surface mining, shipping, transportation,
refining, and utility industries. Terex offers a complete line of
financial products and services to assist in the acquisition of Terex
equipment through Terex Financial Services. More information on Terex
can be found at www.terex.com.
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 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.
SOURCE: Terex Corporation
Terex Corporation
Media
Mike Bazinet, 203-222-6113
Director, Global Communications
michael.bazinet@terex.com
or
Investors
Tom Gelston, 203-222-5943
Vice President, Investor Relations
thomas.gelston@terex.com