WESTPORT, Conn.--(BUSINESS WIRE)--Dec. 9, 2013--
Terex Corporation (NYSE:TEX) today announced that it has agreed to sell
its truck business to Volvo Construction Equipment for cash proceeds of
approximately $160 million. The truck business manufactures and sells
off-highway rigid and articulated haul trucks. Included in the
transaction is the manufacturing facility in Motherwell, Scotland. The
sale, which is subject to government regulatory approvals and other
customary closing conditions, is targeted to close in the first half of
2014.
“The truck business has been an important part of our Company for more
than three decades and continues to produce world class products with
dedicated and talented employees,” said Ron DeFeo, Terex Chairman and
Chief Executive Officer. “However, trucks no longer fit within our
changing portfolio of lifting and material handling businesses. I am
confident that the truck business will benefit by joining a company
sharing similar competencies and offering complementary products and
services. We are pleased to have entered into this agreement with Volvo,
which represents a strong strategic buyer for the business who values
our distribution network and team members.”
Mr. DeFeo continued, “The sale of the Truck business reflects our
strategy to manage our portfolio of businesses and focus on those
businesses that provide the greatest returns for our shareholders. We
recently announced the initiation of quarterly cash dividends to our
shareholders and a share repurchase program and the proceeds from this
sale aid our efforts to improve our financial efficiency and implement
these programs.”
Commenting on the rationale of the deal Volvo CE’s president, Pat Olney
said: “This is a strategic acquisition that offers Volvo CE considerable
scope for growth. The addition of a well-respected range of rigid
haulers extends the earthmoving options for customers involved in light
mining applications at a time of renewed confidence in the sector. The
addition of TEL’s articulated hauler range will enhance our position in
this segment, particularly in high-growth markets. We believe that the
Motherwell facility and its global team members, as well as the current
distribution partners, are valuable to the success of the business in
the future.”
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 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 diversified global manufacturer reporting in five
business segments: Aerial Work Platforms, Construction, Cranes, Material
Handling & Port Solutions and Materials Processing. Terex manufactures a
broad range of equipment for use in various industries, including the
construction, infrastructure, quarrying, manufacturing, mining,
shipping, transportation, refining, energy and utility 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.
Source: Terex Corporation
Terex Corporation
Tom Gelston, 203-222-5943
Vice President,
Investor Relations
thomas.gelston@terex.com