WESTPORT, Conn.--(BUSINESS WIRE)--Apr. 1, 2009--
Terex Corporation (NYSE: TEX) today announced that it has agreed on a
term sheet to acquire the port equipment businesses of Fantuzzi
Industries and Noell Crane for net consideration of approximately €175
million. The Fantuzzi and Noell businesses are global leaders in the
design, manufacture, and service of port equipment. Term sheets have
also been agreed with the existing financial creditors to the Fantuzzi
group for long-term financing on favorable terms to provide
substantially all of the funds necessary to complete the transaction.
The term sheets are non-binding and it is the intention of the parties
to work to enter into agreements and complete the transaction within the
next few weeks.
Terex initially announced the acquisition of the Fantuzzi and Noell
businesses in August of 2008 for total consideration of approximately
€215 million and subsequently announced in December of 2008 that it was
terminating the acquisition due to the existence of a material adverse
change in the Fantuzzi business. After the termination, Fantuzzi
disputed the termination and initiated arbitration proceedings against
Terex in Italy. However, the parties, together with the lenders to the
Fantuzzi and Noell businesses, continued to engage in discussions to
resolve the matter.
“Immediately after closing we will begin to work with Fantuzzi’s team
members, suppliers, distributors, customers and other stakeholders to
aggressively restructure and position these businesses for the eventual
recovery in their markets,” said Rick Nichols, President, Terex Cranes.
Phil Widman, Senior Vice President and Chief Financial Officer, added
“Upon completion of this transaction, our debt levels will increase
modestly due to the financing provided from the existing financial
creditors. With the long term maturities and expected company-wide cash
flow generation, we believe liquidity should be sufficient to get us
through the economic downturn.”
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
Laura Kiernan, 203-222-5943
Director,
Investor Relations
laura.kiernan@terex.com
or
Kurt
Goddard, 203-222-6160
Manager, Investor Relations
kurt.goddard@terex.com
or
Mike
Bazinet, 203-222-6113
Director, Corporate Communications
michael.bazinet@terex.com