Terex Corporation has agreed to sell its German compact construction business to Yanmar Holdings Co., Ltd. for cash proceeds of approximately $60 million.
Terex's German compact construction business manufactures and sells midi/mini excavators, wheeled excavators and compact wheel loaders. Yanmar Holdings has a similar line of mini-excavators, small wheelloaders, and all-terrain carriers
Included in the transaction is the manufacturing facility located in Crailsheim, Germany and the parts distribution center located in Rothenburg, Germany. The sale, which is subject to government regulatory approvals and other customary closing conditions, is targeted to close in the second half of 2016.
“We are pleased to enter into this agreement with Yanmar, as they represent a strong strategic buyer for this business who values our quality designs, global team members and distribution partners,” commented John L. Garrison, Terex President and Chief Executive Officer. “For Terex, the sale of the German compact construction business is another step in our strategy to focus our portfolio on those product categories where Terex has a significant presence in the market and that can provide the greatest returns for our shareholders.”
The acquisition will allow Yanmar to further actively develop its business in the small to medium-sized construction machinery market in Europe by collectively utilizing the sales and service networks, and the product development and production knowhow of both companies.
“We are very happy to have concluded an agreement for the acquisition of Terex Corporation’s compact construction equipment business, which possesses a strong Europe-based sales network and excellent products, including the distinguished German Schaeff series,” said Takehito Yamaoka, president of Yanmar Holdings. “I believe this tie-up will promote not only the short-term but also long-term growth of Yanmar’s construction equipment business by expanding the Yanmar Group’s compact construction equipment business and supplementing the sales network of our French subsidiary.”