WESTPORT, Conn.--(BUSINESS WIRE)--Oct. 29, 2014--
Terex Corporation (NYSE:TEX) today announced that it has agreed to sell
51% of A.S.V., Inc. (ASV) to Manitex International, Inc. (Manitex). This
will result in a joint venture in compact track loaders and skid steers
that is 51% owned by Manitex and 49% owned by Terex. The transaction is
expected to result in more than $125 million of cash received by Terex,
including cash from a recapitalization of ASV prior to closing and a
significant amount in tax benefits. Upon completion of the transaction,
ASV will continue to sell its compact track loaders and skid steers
under the Terex brand. The transaction is expected to be completed
before the end of 2014.
Terex Chairman and Chief Executive Office Ron DeFeo commented, “The
formation of this joint venture is a positive for both Terex and ASV.
Terex preserves its broad compact equipment product offering and its
participation in an expected housing recovery. Manitex will augment
ASV’s existing distribution channels, allowing for faster growth of the
ASV business.” Included in the transaction is ASV’s Grand Rapids, MN
manufacturing facility and certain assets held at Terex’s Southaven, MS
distribution center.
In a separate transaction, Terex will use a portion of the cash it
receives as a result of the ASV sale to acquire $12.5 million of newly
issued Manitex common shares and $7.5 million of convertible debt
securities. Commented Mr. DeFeo, “We have sold businesses to Manitex and
profitably owned their equity in the past. They are a good aggregator
and operator of machinery businesses, and we look forward to extending
our value creating relationship.”
In conjunction with Terex’s third quarter earnings call, scheduled for
8:30 am EDT tomorrow, Thursday, October 30, 2014, Mr. DeFeo will discuss
the proposed transactions.
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 lifting and material handling solutions company
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