Terex-Zoomlion Purchase Talks End; Material-Handling and Port Segment Sale to Konecranes Proceeds
Terex Corp. announced discussions with Zoomlion Heavy Industry Science and Technology Co. regarding the purchase of Terex have been terminated. Terex’s material-handling and port solutions (MHPS) segment sale to Konecranes, for approximately $1.3 billion, will proceed, 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, in a press release. “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.”
John L. Garrison, Terex president and CEO, said the sale of the MHPS business to Konecranes will now proceed. “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,” he said.