Terex will sell some of its asphalt-paving products to Bomag, which is owned by the Fayat Group.
Lines included in the divestiture are asphalt plants and pavers manufactured in Porto Allegre, Brazil, and assets for the asphalt paver, reclaimer stabilizer and material transfer product lines which are currently manufactured in Oklahoma City.
The Brazilian products formerly carried the Cifali brand. Asphalt pavers and material transfer products were former Cedarapids products, and the reclaimer stabilizer had carried the CMI name.
“We are pleased to announce the agreement and are proud to welcome the Cedarapids and CMI products (asphalt pavers, reclaimer/ stabilizer and material transfer vehicles/devices) and reputable brand images into the BOMAG America’s offerings,” said Rob Mueckler, vice president of sales and marketing. “We intend to fully leverage our collective strengths to more efficiently serve road building customers.” (Cedarapids and CMI are registered trademarks of Terex Corp. licensed for use by Fayat as part of the agreement.)
Terex said it would take charges totalling $15 million in connection with the assets being sold that would be likely to impact its fourth quarter 2012 results.
It added that it would continue manufacturing operations in Oklahoma City for its product lines not affected by this transaction – these products include cranes, crushing and screening equipment, concrete plants and waste compactors.